Mayor Ali Salam, a Muslim, ordered all artistic events to be canceled -- including a festival and large Christmas market.
"Our identity and faith aren't up for debate," Salam told The Times of Israel. "The decision [by Donald Trump about Jerusalem] has taken away the joy of the holiday, and we will thus cancel festivities this year."
The residents of Nazareth are primarily Arab citizens of Israel. Nearly 70 percent are Muslim and about 30 percent are Christian.