A feasibility study on the setting up of an offroad centre in Malta

Abstract

Offroad driving or as it is better known 'offroading' is a sport which is practised all over the world and Malta is no exception. However, in 1997, a hard blow hit the local offroading scene when the government issued Legal Notice 196, the Motor Vehicles (Offroading) Regulations, which basically stated that all o:ffroading events are illegal unless a permit was obtained. Ever since the introduction of this Legal Notice, the lack of an offroad site has been a sore point for local offroad enthusiasts. An offroad centre in Malta would act as a general headquarters for all enthusiasts and would incorporate a track where events catering for four-wheel drive vehicles, autocross motorcycles, mountain bikes and quads would be organised in a safe and suitable environment. Furthermore, this centre would generate more interest and develop the offroading sport further. The study considers the disused quarry at Ahrax tal-Mellieha as an ideal site for the centre and includes tentative plans for the proposed clubhouse. The capital investment was estimated and the projections of the recurrent revenue and recurrent expenditure, the profit and loss projections, the tax computation, VAT return and the cash flow projections were computed. Finally, the financial feasibility for the offroad centre was determined and evaluated in view of the assumptions made. The objective of this dissertation is to inquire whether the setting up of an offroad centre in Malta is financially viable. From the result of the study, it transpired that the project is financially feasible, but only just. The study concludes by listing recommendations which would make the project an even more attractive investment.