The Palestinian conflict is a historical one and is the main root cause of disputes and killings in Middle East. Thousands of people have been killed and billions of dollars have been wasted just for the destruction from the day it was started.
The blame goes on all Israelis, Palestinians and the International community for their stubbornness and inability to solve this issue, but it seems that as the time passes the Israelis themselves are now getting mature and reasonable about the future of their country but at the same time they are also confused and afraid.
The reason for this confusion and fear is the city of Jerusalem. This is a fact that Jerusalem is very important and sacred for both the Jews and the Muslims and many crusades were fought to control this city in the history. Dividing this city (according to some news reports) can be one option but a group of people from both sides will disagree with this and it fears that another dispute will start by this decision. But if we look at the brighter side there is another solution, which can be acceptable to both the countries and the rest of the world. Despite dividing this city, Jerusalem should be declared a neutral holy and tourist city open for everyone.
Both the countries (Israel & Palestine state) should shift their administrative offices in other cities but they should leave Jerusalem open for all religions and tourism and its control must be handed over to the carefully vetted officials of both the countries or of the UNO.
In my opinion this can be a win-win situation for Middle East. This will dilute the tense situation in the Middle East. Followers can have easy access to their Holy places and tourism can get boost in this city because lots of tourists will visit this place being the historical and the most vital place on the face of the world, therefore, both the states should consider this point very seriously.