- Associated Press - Monday, August 29, 2011

JERUSALEM — Israel is tired of Hollywood filming Jesus’ Crucifixion in Italy and the Crusader invasion of the Holy Land in Morocco. So Israeli officials are promising better tax breaks, terrorist attack insurance and handouts of up to $400,000 to lure international movie producers to the holy city of Jerusalem. They want to cash in on the multibillion-dollar industry, and want the real Jerusalem - not Mediterranean stand-ins - on the silver screen.

“It’s absurd. Movies set in Jerusalem are filmed in Malta, Morocco and Greece,” said Yoram Honig, an Israeli film director and 10th-generation Jerusalemite. He heads the Jerusalem Film Fund, which was set up three years ago to encourage more moviemaking in the city.

According to conventional wisdom in Hollywood, Jerusalem is too volatile to ensure smooth filming on location. International insurance companies traditionally have refused to provide terrorism risk coverage or have offered it at exorbitant prices.

For a long time, it didn’t make financial sense for the producers. While Israel in the 1980s attracted such star-studded productions as Sylvester Stallone’s “Rambo 3” and Chuck Norris’ “The Delta Force,” it later lost out to other countries that started giving big tax incentives to producers.

“If they think it’s expensive and dangerous, they won’t want to come,” Mr. Honig said.

That is why the Israeli government enacted a law in 2008 offering tax breaks to foreign film companies that shoot in Israel.

Israel introduced an insurance fund this year to provide coverage to a production in case of disruptions by acts of war or terrorism, said Zafrir Asas, manager of audiovisual industries in Israel’s Ministry of Industry, Trade and Labor.

But the 2008 law has had little effect. Mr. Asas said the tax incentives are far lower than what other countries provide.

Nava Levin, the Israeli representative to the Producers Guild of America, said the law creates obstacles, including a requirement that Israeli production companies purchase goods and services for the producers on their behalf. The law “is written in a way that is almost impossible to take advantage of it,” Ms. Levin said.

Even Israeli producers have shied away from the city: Out of 600-some Israeli movies made since the country’s founding, only about 30 have been filmed in Jerusalem, Mr. Honig said. That has begun to change, with some of Israel’s most celebrated new films shot here with the fund’s financial support. The movies include Joseph Cedar’s “Footnote,” which was awarded best screenplay at this year’s Cannes Film Festival.

Now the city is sweetening the pot for international filmmakers by offering cash incentives and a municipal department that will assist with permits and on-location logistics. Only four international productions, most of them European, are shot in Jerusalem each year, Mr. Honig said.

Part of the push to get Jerusalem into movie theaters is to present a more positive image of the city than the conflict seen in the news - “the Jerusalem that more than 3.5 billion people of faith around the world wish to see,” said Stephan Miller, a spokesman for Jerusalem Mayor Nir Barkat.

Mr. Honig said the municipal fund is close to signing a contract with a German producer to shoot a film about the trial of Nazi war criminal Adolf Eichmann, which took place in Jerusalem in 1961. An Italian producer has proposed filming a comedy in the city about an Italian nun who falls in love with an ultra-Orthodox Jew.

Other projects the film fund is courting include an Indian-Israeli romance and “Jerusalem, I Love You,” an installment of producer Emmanuel Benbihy’s “Cities of Love” series. A delegation of Bollywood producers also recently visited the city to scout out filming opportunities.

Tel Aviv and Haifa are developing similar film funds to attract producers to those cities.

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