Since its first democratic election in 1990, Hungary is proving itself something of an economic wolf. With growth at 5% a year, a stable government, a steady inflation rate and a drop in unemployment from 9% to 6% since 1998, Hungary is an Eastern European success story and could become a full-fledged member of the EU as earlyas 2004.

The point has not been lost on commercial production houses. The city of Budapest offers some of the cheapest studio space and most varied on-location shooting in the world. Pioneer Productions, Budapest's flagship production services company, has overseen seven commercial shoots already in 2002.

London's BBH and Spectre Films shot "Ice Chess" for Gordon's Gin in Budapest in mid-March. The set-heavy production called for a strip-poker match in Sweden's famed Ice Hotel. Setting up the halogens on location wasn't an option. Executive producer Helen Whitely saved a considerable amount of money - "in the tens of thousands of pounds, certainly" - building a plastic hotel with Hungarian craftsmen. "We did fly in fake snow from England," Whitely admits.

She also cast two Hungarians in the hero roles, paying each £4,000, including buyout.

"You do get a bit of surliness in Hungary," Whitely says. "Service was not a priority under the communists. Apart from that, I think they were very, very good."

The week prior, agency producer Suzanne Crowe of J. Walter Thompson, NY took an entourage of 25 from her agency and London's Spectre and still estimates a 30% cost savings compared to the US or London. They built an elaborate garden maze for the Thermasilk spot directed by Enda McCallion.

"We shot in the equivalent of an LA studio complex," says Crowe. "You should anticipate longer shooting days because of the language barriers or interpretation, but generally the crew was willing to work hard and find the fastest way to get things done."

Also in March, Copenhagen's Easy Films shot two spots for Nordea through Wibroe, Duckert & Partners. In this case, cost was not the only factor. Nordea is Scandinavia's largest bank and the client wanted a look that could mimic all of the Scandinavian countries at once. The first spot was shot over two days at a local restaurant. For the second they built a two-story Scandinavian house in studio. The concept is an American stuntman doing 11 stunts in 45 seconds - "a real boy commercial," says executive producer Jacob Raben, who found all of the construction materials locally.

Simon Cooper is an executive producer with London's Academy, which has shot almost 10 productions with Pioneer, most recently occupying a Hungarian castle just one hour outside of Budapest for Pilsner through Leagas Delaney.

Cooper encountered his first snag while shooting Levi's "Odyssey" last year with Jonathan Glazer. "Glaze is the only weak link I've ever found in Budapest. With Levi's we built an enormous set with 17 rooms and they didn't have any over there. We had to import tons. Literally everyone that got on a plane had to bring a couple of gallons of glaze."

Despite the hitch, he still plans to return. "It makes financial sense because it's cheap, but we go mainly because they're such a safe pair of hands. Jennifer Webster is the consummate PR woman," Cooper says.

Webster founded the production service company in 1996 with Hungarian partners Nora Petak and Ilona Antal.

"There is a wonderful infrastructure here," Webster says. "We can close down bridges, we can close down parts of the airport, we shot in the opera house, in train stations, on major streets. On a job for Volkswagen Passat there was a last-minute location change. We rerouted all traffic off the main road running by the Danube and in front of Parliament in two days."

The oft-conquered city offers a veritable bonanza of architectural styles - medieval, gothic, Baroque, Renaissance and Hungarian Art Noveau - and its wide boulevards and winding streets make anything possible.

Webster claims even to have found a lone sand dune that was once made to look passably like southern Africa in a prize-winning Lego corporate spot.

Getting the crew out isn't difficult either. Budapest is renowned for its majestic bathhouses built under Turkish rule in the 16th century. Rumour has it you can spend the whole day at the spa for $5 US (birthday suits only, please).

"You need to drive a hard bargain sometimes," Raben warns. "They're rounding it up rather than down. If they're not careful they will run into the Prague syndrome."

Until then, even the caviar is cheap.

PRICE POINTS:
Day rate for an extra: $40
Day rate for hair/make-up stylist: $165
Day rate for set builders: $75
Exchange rate: $1 = 278 Hungarian Forint
Nightlife: plentiful (and smoky)
Tourist destination: the Gellert baths
Film season: year-round
What to bring: your own fake snow
What to leave at home: your swimsuit

Webfiles:
Pioneer Productions> http://www.pioneer.hu