The official Palestinian Authority news agency, Wafa, describes it as "the introduction of the Jewish 'candelabra' into the heart of the blessed mosque."
It goes on:
The alleged temple groups began their celebration of Hanukkah by erecting a huge candelabra in the Al-Buraq courtyard (the western wall of the Al-Aqsa Mosque) and calling for visits to the Al-Aqsa Mosque during the holiday. The so-called "Third Temple Institute" Under the pretext of performing Talmudic rituals and reconstruction it for the Jews.The supposed holiness of the Kotel to Muslims is a new phenomenon from the 19th century. The legend of Mohammed's flying steed does not say where he supposedly tethered the magical animal; early Muslim sources associated it with the southern wall of the Mount, and then later with the southwest corner, and only in the 19th century with the area of the Western Wall.
This holiday is considered one of the most popular holidays in connection with the "alleged temple" and a danger to the Al-Aqsa Mosque in particular. The other festivals are not related to the Temple or the location directly, but this holiday is associated with an alleged purge of the Temple.
As with everything else in Israel, Muslims consider something holy only in relation with how sacred the Jews consider it.