Israel is mostly populated with Jews. Jews do not recognize Jesus Christ as the son of God. Since Christmas is the celebration of the birth of Jesus, it is not recognized as a holiday by Jews. Christmas is, however, celebrated by the minority of Christian Arabs residing all over the country. Although it is not an official holiday, it is still celebrated even as a tradition. To say that Christmas is not evident in Israel would be too ignorant of a statement.
Jews do, however, celebrate Channukah at about the same time that Christians celebrate Christmas.