VZCZCXRO5157
RR RUEHROV
DE RUEHTV #1082/01 1350846
ZNR UUUUU ZZH
R 150846Z MAY 09
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC 1821
INFO RUEHXK/ARAB ISRAELI COLLECTIVE

UNCLAS SECTION 01 OF 02 TEL AVIV 001082 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SOCI ELAB IS VT
SUBJECT: NAZARETH AND THE POPE: A MODEL FOR ECONOMIC 
ENGAGEMENT OF THE ARAB SECTOR IN ISRAEL 
 
 ¶1. SUMMARY:  In preparation for the Pope's visit on May 
14th, the municipality of Nazareth, in conjunction with the 
Government of Israel (GOI), undertook a massive construction 
and infrastructure renovation initiative with a budget of 
almost 25 million NIS ($6 million USD).  City officials want 
this event to spur economic development and tourism, which 
stagnated following the Second Intifada.  They hope to cast 
Nazareth in a positive light, and prove to Israel and the 
world that the largest Arab municipality in the country is 
capable of being an economic partner and providing 
significant outcomes when given the budget and a chance. 
This successful project can be viewed as a model for the 
economic integration of the Arab sector in Israel.  It could 
spur cooperation between the often mutually distrusting Arab 
municipalities and the GOI, and economic engagement with 
other minority communities as well.  Advances in this area 
would also dovetail with the GOI's emphasis on the importance 
of economic development in the West Bank.  END SUMMARY. 
 
----------------------- 
"A Budget and a Chance" 
----------------------- 
 
¶2.  On May 13th, Econoff met with Nazareth municipality 
officials, including Mayor Ramez Jaraysi, Deputy Mayor Ali 
Sallam, Administrative and Media Assistant to the Mayor Dr. 
Suhail Diab, City Spokesperson Rana Zaher, and local 
town-council leader Imad Salaimi, to discuss the economic and 
social impact of the Pope's impending visit to the largest 
Arab city in Israel.  Municipality officials viewed the visit 
as an economic development tool and as an opportunity to cast 
a positive light on the city, which has not rebounded 
economically or politically from the Second Intifada.  With a 
budget of almost 25 million NIS, 80% provided by the GOI and 
20% by private sources, the preparations for the visit were 
massive, and completed within an extremely short time-frame 
of less than two months.  There were over 23 different 
construction and infrastructure projects, including the 
construction of the Mount Precipice Amphitheater, site of the 
Papal mass, with a capacity of 40,000 --making it one of the 
largest amphitheaters in the country and region.  Other work 
included numerous road construction, electricity, 
transportation infrastructure, and beautification projects. 
The entire massive undertaking was a joint effort amongst the 
GOI, the municipality of Nazareth, the Vatican, and various 
private corporations. 
 
¶3.  The Vatican decided less than two months ago that 
Nazareth would be the site of the Papal mass, and the city 
viewed the event as a great challenge.  The GOI and other 
Israeli planners initially tried to persuade the Vatican to 
select Haifa as the Mass site, and told Nazareth officials 
after a preliminary visit that their city would be incapable 
of hosting such an event.  Nazareth mounted a public 
relations campaign and showed in the words of Deputy Mayor 
Sallam, that all it needed was "a budget and a chance." 
Given the short timeframe, the municipality  was unable to 
request bids for the overall contract and instead opted to 
sign a conditional contract with the Jewish National Fund. 
This contract stipulated that all subcontractors, architects, 
engineers, and other hired workers be local Nazarenes, and 
resulted in the hiring of more than 300 local construction 
workers and 100 local engineers.  Local architects also 
designed the large projects, including the amphitheater and 
podium.  Although the municipality and the workers did not 
receive any of the GOI-budgeted money until more than a month 
and a half into the project, work continued at full speed. 
Sallam viewed this as an important sign of trust on the part 
of the workers -- trust of both the municipality (important 
because Arab municipalities are often viewed as corrupt by 
their citizens and GOI), and of the Government of Israel 
(notable because of the animosity between the Arab sector and 
GOI).  As of May 13th, the municipality had received 16 
million NIS, and Sallam himself expressed no doubt that after 
the visit, the remainder would be paid. 
 
--------------------------------------------- -------- 
"The Pope is Going Back to Rome, But This is Staying" 
--------------------------------------------- -------- 
 
¶4.  Nazareth officials expressed hope that the thousands of 
visitors (estimated to be over 100,000), along with national 
and international news media would portray a positive picture 
of a city that has felt "neglected" by the rest of Israel, in 
terms of budgeting and political relevance.  The municipality 
believes that its success in this monumental undertaking 
would send a signal to the GOI, foreign investors, and 
tourists that Nazareth is capable of great things, if given 
the opportunity.  Since the Second Intifada, foreign 
investors and tourists have shied away from the city. 
However, there have been several encouraging signs recently. 
Earlier this month, a large shopping mall with many national 
 
TEL AVIV 00001082  002 OF 002 
 
 
and international stores opened in Nazareth.  This mall has 
not only brought commerce to the citizens of Nazareth, it has 
also led to an intermixing of the neighboring Jewish and Arab 
communities.  Spokesperson Rana Zaher, said that the 
municipality viewed the intermingling of Jewish and Arab 
shoppers as a positive step toward integration of Nazareth 
into the surrounding Jewish population and into Israel as a 
whole. 
 
¶5.  Also, the city is developing an industrial park for new 
and returning companies (NOTE: many Nazareth-based companies 
relocated elsewhere, including the nearby Jewish town of 
Upper Nazareth, following the Second Intifada. END NOTE). 
Local town-council leader, Imad Salaimi, said that the Pope's 
visit has reinvigorated industry in Nazareth, and that many 
companies are using his visit as a time to launch new product 
lines, including a large bottling company that will be giving 
away 70,000 Nazareth-produced bottles of water during the 
visit.  Nazareth officials hope that the Pope's visit will 
also lead to an increase in religious tourism.  The city 
jointly initiated the construction of a 65-kilometer "Jesus 
trail," which begins in Nazareth and continues to the Sea of 
Galilee, and is meant to retrace the footsteps of Jesus. 
This trail, which  was officially inaugurated on May 13th, 
will be open to hikers free of charge, and is expected to 
draw 5,000 visitors this year and 100,000 annually in the 
next decade to Nazareth and the region, according to its 
developers (who include a U.S. citizen).  The city also plans 
to use the new amphitheater for concerts and theater 
performances in the future, to help recast Nazareth as a city 
of culture as well as religion, making it an entertainment 
hub for the region. To this end, the city will also be 
hosting the "Nazareth Spring Festival" from May 8-19, which 
will include local music, theater, dance, and art. The 
construction and infrastructure projects have also brought 
much-needed improvements to the city's infrastructure.  As 
Ms. Zaher put it, "the Pope is going back to Rome, but all 
this is staying." 
 
------------------ 
"Pitfalls Persist" 
------------------ 
 
¶6.  Of course, the cooperation was not without its problems. 
Just two weeks ago, Dudi Cohen, the Commissioner and 
Inspector General of the Israel National Police, ordered the 
event planners to reduce the number of slated attendees from 
45,000 to 20,000 because of safety and security concerns, 
telling municipality officials that Nazareth would not be 
able to complete the necessary adjustments to the 
amphitheater.  Even though these concerns were overcome, 
Nazareth officials said that they were still being told by 
GOI officials up to one week prior to the Papal visit that it 
would have been better if the event had been hosted in Haifa. 
 Three days before the event, city officials were again told 
that they would need to make improvements such as reinforcing 
the entire amphitheater with concrete, or significantly 
reduce the number of attendees.  In the end, however, 
according to Nazareth officials, GOI officials told the 
Nazareth municipality that its efforts were commendable and 
could not have been completed as successfully even by the GOI 
itself. 
 
 
¶7.  COMMENT:  The massive scale of the preparations for the 
Pope's visit, and the cooperation between the largest Arab 
municipality in Israel, the government, the Vatican, and 
private corporations can be viewed as a model for further 
economic integration and development of the minority sector 
in Israel.  Despite the pitfalls and problems, the 
cooperation on this massive project is an encouraging sign 
for future economic cooperation between the various sectors 
in Israeli society. 
 
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Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
********************************************* ******************** 
CUNNINGHAM