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Pinching pennies in Hollywood

TOURISM

Thanks to airline and hotel deals, vacationers are still coming to see the stars, but they're spending less on dining and attractions.

June 04, 2009|Hugo Martin

Somewhere between Debbie Reynolds and Jack Benny, the Laitala family of Duluth, Minn., stopped to marvel at the throngs of tourists shuffling among the sidewalk stars of Hollywood Boulevard.

Joel Laitala, a mechanic, focused his camera on a star in the pavement while his wife, Lori, watched as costumed characters -- Superman, Capt. Jack Sparrow and Homer Simpson -- posed for photos with tourists for tips.

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Every day, visitors from around the world flock to the hot sites of Hollywood, the historic birthplace of America's entertainment industry. But so far this year, the crowds are thinner, tourist spending is down and merchants are nervous.

And the Laitalas were typical of today's visitors. They were scrimping. They avoided trinket shops, theme parks and expensive eateries. They planned to buy food at a grocery story and spend most of their visit to Los Angeles at the beach or the zoo.

"We are definitely holding back," Lori Laitala said, citing the high cost to feed and entertain her three boys.

Aided by lower gas prices, cheap airline tickets and lodging deals, tourists like the Laitala family continue to flock to see Marilyn Monroe's handprints in front of Grauman's Chinese Theatre and Tom Selleck's star on the Hollywood Walk of Fame.

But the slumping economy has taken some of the sparkle off Tinseltown, which is one of the top tourist destinations in the world. Grauman's Chinese Theatre alone attracts about 4 million visitors a year, more than the Empire State Building in New York and the Palace of Versailles in France.

With fears of layoffs, record unemployment, foreclosures and failing banks, today's Hollywood visitors are extra tightfisted when it comes to spending on food, tips and souvenirs.

In a January survey by the Hollywood Chamber of Commerce, 32% of area merchants said business in 2008 was down significantly or moderately, with restaurants taking the biggest hit, a drop in sales of nearly 25%, said Hollywood Chamber of Commerce President Leron Gubler.

The pain of such frugal spending has been felt by waiters, tour bus drivers and souvenir shop owners, many of whom are calling it Hollywood's worst year for tourism since the 2001 terror attacks.

"People still want to come but they don't want to spend much," said Fred Sapir, manager of Starline Tours, the largest and oldest tour company in Hollywood. Business has dropped off between 5% and 10% since February, he added.

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