BOULEVARD MERCHANTS HOPE FOR BETTER TIMES OSCARS MAY FUEL HOLLYWOOD BUSINESS.

Byline: Greg Hernandez Staff Writer

HOLLYWOOD - The world's attention will be on Hollywood Boulevard tonight as the Academy Awards make their debut at the Kodak Theatre, a spectacle replete with stars strolling down the red carpet before hordes of adoring fans and assembled media.

But in the shadows of this grand new theater that is Oscar's new home, longtime businesses along the boulevard struggle for their very survival. All this Tinseltown hoopla means little to the souvenir stores, photo shops, tour bus operators and eateries that saw business plunge after the Sept. 11 terrorist attacks against the U.S.

``I remember the days when we made a profit,'' said Fred Schwartz, operator of Casablanca Tours for 22 years. ``Those days are gone.''

While the sparkling new Hollywood & Highland retail development adjacent to the Kodak Theatre has drawn some local traffic, it is tourists from other countries that are sorely missed by merchants new and old.

``The international tourists have an impact far greater than their numbers because they are large spenders,'' said Leron Gubler, president of the Hollywood Chamber of Commerce. ``A lot of these businesses opened anticipating the international tourists, so obviously their business plan has been affected since Sept. 11. We're hoping the Academy Awards will help send the message that Hollywood is back.''

At the White or Black souvenir shop on Orange Street, just a stone's throw from tourist magnet Grauman's Chinese Theatre, business has dropped by more than 70 percent since last fall.

``It's so dead here and I still have to pay the rent,'' said owner Won Kim. ``There may be a lot of people coming here to see the Oscars, but after that they are gone. Are they going to buy here? I don't think so.''

Around the corner on Hollywood Boulevard in Winner Gifts, which has been adjacent to Bugs Bunny's star on the Walk of Fame for a decade, manager Tony Dang said this summer will be crucial to long-term survival.

``We will try and hang on until then,'' Dang said as he stood in front of his empty shop.

Dang and others said the increase in foot traffic in the area in recent months is deceptive because much of it consists of locals who are not likely to spend money on the plethora of kitschy souvenirs popular with tourists from other foreign countries.

International tourists especially account for shoppers in a large percentage of the businesses at the several camera and photo shops along the boulevard. Emanoel Cohen, manager of J.M. Electronic, is looking hopefully to the coming months when he hopes people will overcome their reluctance to travel.

``We don't have the tourists from the other countries and that's what we need,'' Cohen said.

Over at the new Hollywood & Highland complex, business has not been booming either but some business owners were reluctant to talk about it last week.

``I can't talk to you,'' one merchant snapped. ``I'm not even going to go there.''

But Mike Reyes, co-owner of the high-end jewelry stand Mel & Di, seemed optimistic despite inconsistent crowds so far.

``Last Saturday was slow but Monday was hopping,'' Reyes said. ``It's fluctuating. We have high hopes for spring and summer.

Reyes' stand has the advantage of being located in the complex's very visible courtyard while other businesses said they have suffered because the labyrinthine design of the complex has left them off the beaten path.

``It's taking people a long time to find us,'' said Rudy Interiano, manager of Richie's Pizza. ``Some employees at the mall don't even know that we're here.''

The pizzeria, one in a chain owned by Raquel Welch's husband Richie Palmer, is right next door to the front doors of the Grauman's Chinese Theatre six-screen multiplex. But it and adjacent eateries are not visible from any other part of the complex.

Los Angeles City Councilman Eric Garcetti, whose district includes the Hollywood area, said tonight's Academy Awards will go a long way toward solving these and other problems in the area.

``You will have one in five faces on the Earth seeing and watching Hollywood Boulevard. One could not pay for that kind of advertising,'' Garcetti said. ``I think, on balance, this will be a real shot in the arm for all the businesses in the area - and not just in the summer.''

``Everyone from a tourist in Japan to someone in the hills of Hollywood might want to come back to the boulevard,'' Garcetti added. ``They will see that the glitz and the glamour has really returned and it is an exciting place to be again.''

Some locals and domestic tourists are already won over.

Hollywood resident Katie Tharp, 26, spent Monday showing some friends from out of town around some of the Hollywood landmarks. As she paused to inspect Bob Hope's footprints in front of Grauman's, she said an overhaul of the area had been long overdue.

``It's a great face lift,'' said Tharp, who works in the film industry as a set designer. ``The fantasy and the reality had been two very different things. But even when it was in its run-down state, it still held a part of Hollywood for those who live here. But the tourists weren't captivated, so I think it's really good that they redid Hollywood Boulevard for the public and the fans.''

Dusty Doering, a 19-year-old visiting the area the area with his family, stopped to inspect Mel Gibson's footprints and gave his impressions of Hollywood Boulevard.

``I think it's got a real Times Square-type of environment and it's real fun,'' said Doering, a college student from Colorado.

But some tourists looking to see their favorite stars hanging out at the Hamburger Hamlet or wax museum were in for a rude awakening, unaware that the stars usually only show up on the boulevard these days for movie premieres at Grauman's or the El Capitan and, of course, tonight's Oscars.

Nebraska residents Brian and Kimberly Uhler, making their first visit to Hollywood, looked at the famous cement slabs in front of Grauman's and searched in vain for some celebrities.

``You always hear about Hollywood and here we are, but we haven't seen any stars yet,'' a disappointed Brian Uhler said, camera in hand. ``This area is a lot more touristy than we thought.''

CAPTION(S):

2 photos

Photo:

(1) Fred Schwartz, operator of Casablanca Tours, said business has dried up since the Sept. 11 terrorist attacks cut tourism. Business owners hope things will pick up during the summer.

(2) Street entertainers, like this fellow ``sitting'' in a cage ``carried'' by Frankenstein's monster, try to draw Hollywood Boulevard visitors into theaters, restaurants and souvenir shops.

David Sprague/Staff Photographer