A Feb 2010 Vanity Fair article reported that the film’s inception occurred during a New York City dinner between actor-producer Warren Beatty, writer-director Elaine May and their attorney, Bert Fields. May was fascinated with the Middle East and also wanted to do a film that would pay homage to the Bing Crosby and Bob Hope Road pictures from the 1940s. She began throwing out ideas about a couple of sub-par singer-songwriters clinging to their dreams of stardom. The partners would take a job in Morocco when opportunities dried up at home and, in the process, get caught in a conflict between the CIA and left-wing extremists.
       A 19 May 1987 NYT article reported that actor-producer Warren Beatty sold the picture in broad strokes without a script to then-Columbia Pictures chairman, Guy McElwaine. Beatty received $28 million to produce the film, which greatly underestimated the costs involved.
       According to a 16 Mar 1987 New York article, Beatty invited trusted friends to his Hollywood Hills home in 1985 for a reading of the Ishtar script. Participants included director Elaine May’s longtime friend, Marlo Thomas; writer Peter Feibleman, an executor of Lillian Hellman’s estate; actor Charles Grodin; playwright Herb Gardner; Beatty’s cousin, David MacLeod; and actor Dustin Hoffman. “It was very clear that we were hearing a terrific script,” said one participant, “one that should…get made into a movie. It had problems, but it was very, very funny, and very Elaine.”
       A 9 Aug 1985 DV production chart announced that principal photography on “Elaine May Untitled” would begin 7 Oct 1985. An 11 Aug 1985 LAT stated that location scouting was underway for the movie, which was also known by the working titles, Untitled Comedy and The Beirut Hilton. The Feb 2010 Vanity Fair stated that the film’s budget was $51 million.
       The 16 Mar 1987 New York reported that production designer Paul Sylbert designed the Ishtar nightclub set of "Chez Casablanca" as a parody of Rick’s Café in Casablanca (1943, see entry). The NYC nightclub Amsterdam’s was transformed into a singles bar. A 15 May 1987 LAHExam article stated that the basement quarters of the shuttered Trax nightclub on West 72nd Street became “The Song Mart,” where Beatty and Hoffman performed on open mike night, and the Comic Strip, a nightclub on the Upper East Side, was also used during shooting.
       Briefs in the 28 Mar 1986 HR and 28 Mar 1986 Back Stage reported principal photography was completed on 25 Mar 1986 at Kaufman Astoria Studios in New York City. According to a 24 Mar 1986 NYDN article, although some media outlets reported the completion of principal photography, Columbia Pictures executives were reluctant to make an official announcement because of May’s post-production track record. May edited A New Leaf (1971, see entry) for ten months before Paramount Pictures seized the picture from her control. By that time, the film’s budget ballooned to nearly triple its original $1.8 million cost, and the shooting schedule had doubled. May had also spent three years in post-production on Mikey and Nicky (1976, see entry).
       The 16 Mar 1987 New York pointed out that a decision was made to shoot various scenes in New York City when locations in the Middle East could not be found for “three important indoor sequences.” A set was dismantled and shipped to the East Coast, while other new sets were built at an added cost of $250,000.
       The movie’s cost overruns developed because May worked with photographer Vittorio Storaro and his Italian camera crew in New York City. According to the city’s union rules, it was necessary for the production to hire additional “standby” crew. Beyond that, May often insisted her actors perform a scene fifty times without any direction, while three cameras rolled. May also opted to shut down production for several days in late Feb 1986 to give Beatty and Hoffman time to polish their singing act.
       In a 10 May 1987 Chicago Sun-Times article, Beatty claimed that the production saved money by filming in Morocco because the pay scale in America was much higher and the winter weather more unpredictable and bound to affect the shooting schedule. However, the 19 May 1987 NYT contradicted Beatty, saying location shooting was “difficult and expensive.”
       According to Vanity Fair, in spring 1986 in New York City, the designated editors began wading through 108 hours of film, whereas a typical comedy might generate thirty hours of raw footage. According to the 15 May 1987 LAHExam, May shot approximately between 450,000 to 500,000 feet of film although only 10,000 feet went into the final film, “a ratio of fifty to one.”
       As noted in the 19 May 1987 NYT, during post-production, there was a period where three different teams of editors worked around the clock. Fees were paid for “double time, triple time, and the even more expensive golden time.” Rumors circulated that May, Beatty and Hoffman each worked on their own final cuts of the film. Vanity Fair reported that the working relationship between Beatty and May deteriorated as Beatty felt he was being undermined. At one point, attorney Bert Fields became a mediator in the editing room, taking notes on various preferences that would eventually be incorporated into a final cut.
       Meanwhile, earlier Guy McElwaine was forced to resign as Columbia Pictures chairman, and David Putnam came on board as the new studio chief. Putnam had no attachment to the project, and Beatty suspected that the studio wanted to dump the picture and leaked damaging publicity to the press. Given the negative circumstances surrounding the film, Beatty and May remained estranged for nearly two years after its release.
       A 22 Aug 1986 HR news item stated that plans to release the film on 26 Nov 1986 on 650 screens, then expand on 19 Dec 1986 was switched to a May 1987 release date. As reported in the 22 Aug 1986 LAHExam, Columbia executives gave May additional editing time, given her penchant for perfectionism.
       The 19 May 1987 NYT noted that Columbia Pictures spent $8 million on prints, promotion, print and television advertising, and publicity. The 15 May 1987 LAHExam stated that the film would have to gross $100 million to be profitable.
       According to a letter in AMPAS library files from Faris Bouhafa, public relations director of the American-Arab Anti-Discrimination Committee, sent to Los Angeles Times film critic Charles Champlin, the organization expressed its disappointment that a special screening of the movie promised by Columbia Pictures executive Ed Russell was held 7 May 1987, a week before its release when it would be too late to re-cut the picture based on the group’s feedback. Bouhafa took offense to racist dialogue such as actress Isabelle Adjani’s comment, “We are an ancient and devious culture,” and later, a plot point in which Beatty tells Hoffman to “go act like an Arab.” Bouhafa further criticized Hollywood’s use of three Arab stereotypes including the Arab oil sheik, the bumbling Arab idiot and the Arab terrorist. The letter asked Champlin to take these concerns into consideration in his review of the film.
       A 30 Jan 1989 LAT news item reported that Beatty, Hoffman, and May filed a lawsuit against Columbia Pictures on 27 Jan 1989 in Los Angeles Superior Court to recoup more than $7 million in wages owed. The complaint alleged that the studio failed “to meet advertising agreements,” which negatively impacted the movie’s performance at the box office. After Columbia reported the picture earned $38.9 million in gross theatrical receipts, and $7.4 million in videocassette (VHS) revenue, plaintiffs stated that they were owed an additional $1.4 million from the theatrical release and $352,184 from VHS sales. According to a 16 Mar 1989 WSJ article, Columbia agreed to pay the talent a percentage of the gross receipts, if the movie earned between $30--$47.5 million. The initial percentage that would kick in was determined to be 31.5%. The 30 Jan 1989 LAT added that Beatty and Hoffman also stated they received payments of $500,000 each one year late, and were entitled to $50,000 each in interest. Additionally, Hoffman claimed that he was owed $227,876 in development fees from Columbia for his input on Ishtar, as well as four other properties. The outcome of the dispute has not been determined.
       An 11 Aug 2013 LAT article reported that the film was released on Blu-Ray format the week of 5 Aug 2013 although it was never released on DVD in North America. Contemporary filmmakers including Quentin Tarantino, Lena Dunham, Edgar Wright, and Joe Swanberg have lauded the film in recent years, chipping away at its legacy of mediocrity and excess.
       End credits state: “Interiors filmed at Kaufman Astoria Studios, Inc.” The following acknowledgments appear in end credits: “The Producers wish to gratefully acknowledge the kindness and co-operation of His Majesty Hassan II, King of Morocco” and, “The Producers Wish to Thank: Bermans and Nathans Limited, City of New York Mayor’s Office for Film, Theatre and Broadcasting, New York City Police Department MTV Unit.” End credits conclude with the dedication, "This film is for Lydia Fields."