Legionella testing facility in Malta : a commercial viability study.

Abstract

Objectives: To establish if there is a need of setting up a Legionella testing laboratory locally and to carry out a feasibility study to determine if the setting up of an accredited Legionella testing laboratory in Malta could be profitably sustained by the demand for such a service.

Methodology: Market feasibility was determined by holding interviews amongst top executives of hotels to establish the level of awareness as regards Legionella control and prevention with particular reference to microbiology testing. The technical and financial feasibility of setting up a Legionella testing facility was determined by in depth analysis to be able to capture all costs that are incurred.

Results: All hotel managers are aware of Legionella and its consequences on hotels, namely 'close down'. 85% of respondents stated that an important obligation as part of the prevention and control programme is to carry out microbiological analysis on water samples. 70% of hoteliers were aware that Legionella testing is carried out abroad. Legionella consultancy firms are willing to carry out testing at a local testing facility as long as the service provided is satisfactory and at a reasonable price. The lowest bargaining price for testing obtained from the consultancy firms was that of €33. The break-even analysis forecasts that 1356 samples need to be analysed yearly to be able to break-even.

Discussion: Interviews with hoteliers indicated that there is a demand for microbiological testing for Legionella by hotels. P&L projections showed that even though in the first years of the business, one would be able to break-even and make a profit, the venture on its own and in its proposed form would not attract investors looking for a quick and attractive return on their investment.

Recommendations and Concluding remarks: One can conclude that although it is technically feasible to set up a Legionella testing facility and one would be able to break even and earn a profit during the first few years of the business, it would be wiser to explore a wider market to be more financial feasibile. Expansion of the business should be considered both as regards Legionella testing to be offered to other institutions and also by introducing other microbiological tests to offer to hotels, such as other water analysis. This feasibility study has provided a good template of how to determine the economical analysis of laboratory activities.