Im Slovak and i must say that movie made us look really bad :D
That "city" what they called Bratislava is far far away from reality :)
But we have some gypsy settlements which looks really close to that...
Btw it was filmed at Prague and one other czech city.
This i found at wikipedia about it (too lazy to describe it on my own):
Slovak reaction to setting
The film's release was accompanied by strong complaints from the country of Slovakia, and also from the Czech Republic. Slovak officials were disgusted by the film's portrayal of their country as an undeveloped, poor and uncultured land suffering from high criminality, war and prostitution,[8] fearing it would "damage the good reputation of Slovakia" and make foreigners feel it was a dangerous place to be.[9] The tourist board of Slovakia invited Roth on an all-expense paid trip to their country so he could see it is not made up of run down factories and kids who kill for bubble gum. Tomá Galbavý, a Slovak Member of Parliament, commented: "I am offended by this film. I think that all Slovaks should feel offended."
Defending himself, Roth said the film was not meant to be offensive, arguing "Americans do not even know that this country exists. My film is not a geographical work but aims to show Americans' ignorance of the world around them."Roth has repeatedly argued that despite the many films in The Texas Chainsaw Massacre series, people still go to Texas.