JERUSALEM (AFP) - Israel on Wednesday approved plans for a large tourism complex in the heart of Arab east Jerusalem and another 130 homes for Jews elsewhere in the Holy City's annexed eastern sector, an official said.
Both new construction plans were rubber-stamped at a meeting of Jerusalem city council's district planning committee, angering the Palestinians.
The new tourism venture will be built in the flashpoint neighbourhood of Silwan, which lies just south of Jerusalem's Old City.
"The municipality authorised construction of a tourist complex that includes 250 parking spaces, an archaeological park, an events hall and a library," city councillor Pepe Alalu of the left-wing Meretz party told AFP.
The project is to be built on a plot of land currently being used as a car park opposite the Dung Gate, the main entrance to the Western Wall and the Jewish Quarter of the Old City.
It would be managed by Elad, a hardline settler organisation which seeks to increase Jewish settlement in east Jerusalem and which runs the nearby archaeological site at David's City.
"Jerusalem municipality attaches great importance to the development of this tourism and archaeology site in David's City," municipal spokesman Stephan Miller told AFP.
"The plans which were presented to the city council will allow for the establishment of visitors' centres, exhibition centres, a conference hall and other facilities which will allow the most important archaeological finds discovered at the site to be put on display," he said.
But local Palestinian activists lashed out at the move, saying the 8,400 square metre project (90,400 square feet), was another step in Israel's plans to take over their neighbourhood.