Street artist Banksy has opened a hotel next to Israel’s separation wall in Bethlehem, aimed at attracting Israeli tourists to the city to open a dialogue with the Palestinians, the Middle East Eye reports.

Named the "The Walled Off Hotel", the nine-bedroom building is staffed by local people, who were unaware Banksy was behind the project. It contains dozens of Banksy's works, a themed bar and interactive exhibits. It will also host exhibitions by Palestinian artists.

Although Israelis are officially banned from entering the Palestinian Authority-controlled areas in the West Bank, the hotel, which opened on Friday, March 3 is situated in an area just outside the city which is under Israeli control.

Banksy says people from all political and ethnic walks of life in the Middle East are welcome to stay in the hotel. Reportedly, the hotel has been “decorated to resemble an English gentlemen’s club from colonial times” to make a point about the UK's historical role in establishing the state of Israel in 1948.

Banksy's spokespeople insisted the building is "a real business venture, not an art stunt", with rooms to be rented out later.

Bethlehem tourism firms have long complained that the wall and Israel's continued occupation of the West Bank have crippled business.