Cannes feels pinch from weaker dollar

By Brigitte Malho

CANNES, France (Reuters) - Hollywood executives are out in force again at the world's biggest film festival but with the dollar near to record lows against the euro, they are not spending as freely at the boutiques along the Cannes shoreline.

"Americans come and they're surprised by the prices," said Sander Smits, who runs a flower shop in the Cannes town centre. "When you see thirty-five or forty-five euros, it's a lot more in dollars," he said.

The uncertain picture for the U.S. economy has helped slash the value of the dollar against the euro, which is currently trading at over $1.55.

As a result, the high prices charged by many shops and restaurants during the festival have become more forbidding, even for an industry used to big spending.

"American clients are finding that coming to Europe for the festival costs 30 percent more than last year," said Pascal Brun, managing director of the Majestic, one of a string of luxury hotels that line the Cannes Croisette.

A 35-euro bunch of flowers, such as the one Smits referred to, would cost an American visitor more than $55, and many are thinking twice about restaurant and bar bills.

"People are still entertaining because they need to be here," Brun said. "But they're spending differently. Instead of inviting 50 people for cocktails, they'll have the same reception but they'll only invite 30 people."