A feasibility study for the setting up of a water sports operation

Abstract

Purpose: Tourism in Malta has always been a key industry for our economy. In recent years the market has been moving towards more upmarket tourism. Since Malta’s tourism product is rapidly changing, such a study has been taken up to determine whether setting up of such an operation within an upmarket resort within a premium location is viable or not. Design: This study first takes a look at the capital expenditure needed when setting up such an operation, which was determined through several discussions with various experts within the field. An operational review of such an operation was conducted, to determine several items of income and expenditure such an operation generates. Finally investment appraisal techniques are applied to determine the feasibility of such an operation. The number of working days was altered in order to create various scenarios. Findings: After the capital expenditure was determined, and an operational review was conducted, such figures were eventually used to conduct investment appraisal techniques to assess the operation’s feasibility. Conclusion: Due to the operation’s high capital expenditure and seasonal demand, it is not feasible to invest in such an operation However, proposed alterations were proposed within the discussion.