Beit Jala and the cities in the Bethlehem area are famous for their olive wood carvings, and there are many local factories, often family owned, which produce them. Other local handcrafts include embroidered purses and bags, and various kinds of needlework and fiber arts. The markets contain a plethora of stalls selling beautiful fabrics for headscarves, as well as black and white kafeeyas, the traditional headdress of Palestinians.
While in Beit Jala be sure to pick up a bottle of local olive oil; the city’s presses are considered to produce the best in Palestine. If you are planning to visit the Cremisan monastery be sure to pick up a few bottles of the monks’ wine, or if not you can find some in most supermarkets and liquor stores.
Most souvenir shops are located around manger square in Bethlehem, but charge steeper prices. Those staying in Beit Jala will probably find better prices closer to their hotel than up in Bethlehem.