The development of a new yacht marina in Malta : a feasibility study

Abstract

Purpose: Malta's strategic location at the heart of the Mediterranean together with its natural creeks makes it an ideal yachting destination. Nevertheless, the shortage of supply in berthing spaces remains a predominant issue. Furthermore, Malta offers several other advantages which render it an ideal berthing base. This study aims to determine whether the development of a new yacht marina in Malta, would be a feasible business venture or otherwise. Design: The study delves into the capital expenditure which would be required in order to develop the proposed yacht marina. It then outlines in detail the operational aspect of the marina project whereby the typical costs and revenues related thereto are established and quantified. From this analysis, the project's financial information, such as its cash flows, are derived. Several investment appraisal techniques are' subsequently utilised so as to enable a spectrum of results on which the feasibility or otherwise of the project can be determined, thus adequately fulfilling the objective of the study. Findings: The findings, illustrated through the techniques used, revealed appealing results for the proposed project. Conclusions: The sales strategy which would be utilised enables the receipt of substantial cash flows in the project's early lifetime which will compensate for the high initial infrastructural costs and also render the project feasible. Implications: The study suggests than all in all, the risk of investing in the proposed project is worth taking.