Contrary to #1 I live not far from Acre and I also have seen it changing over the years, but I must say: a lot for the good. The old City is mostly Arab with beautiful renovations done. Many local and international tourists come, which means progress for the local population, it is a delight to sit at the harbour or walk through the kasbah. The new city is cleaner and now there is even an upscale mall where Jews & Arabs find a place to spend and to work. The ultra orthodox taking up whole neighbourhoods is not a specific Acre problem but somethig that is happening country wide. it bothers secular and observant Jews just as much as the Arab populations.
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