Palestinians have strong handicraft traditions that have been passed down from master to apprentice for generations, where the competitive advantage of the sector is derived from its relation with the historic nature of this region, which has a rich blend of cultures and religions. The strengths of the sector are typified in the authenticity of products, competitive prices in comparison to the region, wide range of offered products that includes 17 handicrafts sub-sectors, and uniqueness of major handmade products in terms of design and quality, such as: mother of pearl, ceramics, olive wood and Hebron glass,  and others.

The majority of handicrafts producers are small workshops and artisan shops heavily clustered in the Bethlehem and Hebron areas; employing 10,000 workers in around 500 workshops. The total sales of the sector are estimated at US$50 million, where about 30% is sold domestically, 35% is destined to Israeli market, and the remaining 35% is exported Europe, USA and the Arab region.

The local market has been traditionally dependent on the tourism industry, where the market is heavily seasonal with peaks during summer, Easter and Christmas where articles are sold in the local souvenir shops in the major tourist cities.

The attraction towards authentic hand-made handicrafts maintains the highest potential for the Palestinian handicraft sector, nevertheless, analysis of the sector revealed that there are promising opportunities in developing new designs and products; inspired from the ethnic Palestinian motifs to meet the modern market desires, and reflecting the new style on the business image, highlighting the values of authenticity and uniqueness.

 Source: The Palestinian Association of Traditional and Tourist Industries, 2007.