An estimated 1.3 million people visited the West Bank this year, boosting the troubled economy.
But Israel also reopens border to allow humanitarian supplies into Palestinian territory.
In addition to monitoring the volatile border region between Israel and Lebanon, the peacekeepers build roads and teach foreign languages to locals.
Israelis and Palestinians both face heated political contests that are adding to the volatility between Israel and Hamas after a six-month cease-fire broke down last week.
A six-month truce with Hamas ends Friday. Violence between Israel and Gaza militants has flared in recent days.
Former President Jimmy Carter urged new focus on Israeli-Palestinian peace last week. But other accords may be more feasible.