ABSTRACT
The study examined local residents vs. residents of surrounding areas in terms of their attitudes toward tourism development in the city of Nazareth by focusing on the Nazareth 2000 millennium celebrations. The attitudes of Arab residents in Nazareth and the Galilee area about the economic role of tourism in Nazareth, the planned millennium festivities, and the existing problems that might affect these celebrations were studied. The study found that residents of surrounding areas rather than local residents expressed a stronger belief in the role of tourism as leverage for economic development, and at the same time expressed a deeper concern about potential conflicts that might undermine the success of the planned mega-event.