Filmmakers flock to Prague for a cheap Hollywood

The Czech Republic is still able to produce 30 domestic films a year, twice what its larger neighbors turn out. While "Blade II" had a total budget of $70 million, with just $15 million spent in Prague, most Czech features cost less than $1 million.

"Two hundred million dollars is a huge boost for our local economy," Mr. Kreci says. "You are only putting money in without taking anything out or polluting the countryside. There is no negative side effect. Film production is the ideal foreign investment."

Productions by wealthy Western studios now support thousands of Czech stunt workers, cameramen, light and sound technicians, and set designers. Listvan worked on "Saving Private Ryan" and "The World is Not Enough" abroad and, in Prague, on "Hart's War," a World War II movie that is enjoying its opening season in the United States.

Yet some analysts worry that Prague's sudden stardom may not last. Prices and labor costs are expected to rise when the Czech Republic joins the European Union in 2004. Then, the country may lose its competitive advantage and end up as just another unknown country, too small to produce even its own films.

"Eventually, a cheeseburger will cost as much in Prague as it does in Paris," says Mike Cella, an American actor and industry analyst in Prague. "At that point, you are going to see a lot of this work go away."

Last year already saw a major slump in foreign productions, though for a variety of reasons. In the spring, Prague's studios were so busy with major Hollywood productions that others were being turned away. But in the summer, US actors threatened to strike over so-called "run-away films" going to cheap locales such as Prague, and Hollywood stopped sending productions overseas for a few months.

Then came Sept. 11, and not only were there no more Hollywood films in Prague until year's end, but some that had already been finished were shelved for "inappropriate material" dealing with terrorist plots.

Norbert Auerbach, a consultant for Barrandov remains optimistic. "There are always lulls, and foreign productions don't come here just for the low prices," he says. "The quality of work here is much higher than in any other country in Central and Eastern Europe. And, as an added advantage, the labor here is not unionized."

Prague's most serious competition, according to Auerbach, comes from countries like Romania, which has an upgradeable film infrastructure and prices that undercut even Prague due to substantial state subsidies.

Listvan, however, isn't worried about his job security. "I say the sooner we join the EU, the better," he says. "Prices may rise, but we are ready to compete on an equal footing with the rest of the world."

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