The business case for Malta and Powerboat P1

Senior Executives of KBL Powerboat Management Limited are expected to brief top local tourism and industry authorities in the coming weeks on the strategic business case for Malta to become a major player on the international stage of the Powerboat P1 World Championship.

The British-based company has the rights to organise the world championships, sanctioned by UIM, that combine the equivalent of Formula 1 with the ever-changing environment of a rally - on the sea. Last May, Powerboat P1's first race of the 2004 season was held in Malta.

Nathan Knight, managing director of KBL Powerboat Management, told The Sunday Times from his offices in Mayfair, London, last week: "There are a variety of important elements to creating a successful, long-term business partnership with Powerboat P1.

"For us it is important that everyone takes a holistic approach to what it is we are creating together. This means that it is essential to find and work with partners to build something meaningful with real value to all the stakeholders." According to Mr Knight, these could be countries, cities, local and international businesses, tourism authorities, business partner sponsors and suppliers.

"The key is genuine give and take, integrity of approach, clear communications and the desire to create win-win situations," he added. Mr Knight knows a lot about winning. He is an American lawyer who has practised internationally and specialised, before becoming involved in acquiring sports rights, in IP protection for the American film industry in such challenging markets as the former Soviet Union and other equally difficult markets.

He and the 250-strong team he has built under him were responsible for the elimination of significant volumes of black market pirating of US films.

The charismatic Mr Knight knows exactly where he and his fellow directors are going with P1: "Our objective is to create the third global motorsport, (after) cars (and) motorbikes - powerboats. We also want to create what we call 'Signature Venues' with city and country partners with the vision to understand just how big this thing is going to become. Our approach is about business first, i.e. delivering value back to all our stakeholders. Then it is about the motorsport on the water and the entertainment spectacle that surrounds it on the land as well."

Martin McDonald, commercial and marketing director of Powerboat P1, who was largely responsible for bringing the UIM World Championship to Malta this year, said: "The best demonstration I can give you of the power of motorsports marketing is to mention 'Monaco'. The first thing that jumps into your mind is 'Formula 1'.

"Similarly, if I asked you for three F1 venues, Monaco would undoubtedly figure in that list. That in a nutshell is what we are talking about in terms of marketing power, and we want to make that truth a reality for Malta and Powerboat P1.

"There is no reason why the glamour and lifestyle benefits associated with high octane motorsport cannot be brought to Malta."

Asked to comment on such sporting events, a spokesman for the Malta Tourism Authority said: "The MTA encourages the organisation of high-profile events which help boost Malta's image as an exciting tourism destination, more so when such sports events generate exposure in the international media.

"The MTA considers sports tourism, and particularly watersports, as a strategically important segment, (and) evaluates the support it gives to such events within its budgetary parameters for that particular year as well as its strategic priorities, given these parameters."

Two local 'protagonists' at this year's Powerboat P1 world championships were the Chaudron team, owned by Charles Ciantar of Chaudron Powerboat Builders, and Ruben Caruana, managing director of Sign It.

Chaudron Powerboat Builders is a small family concern, based at the Bulebel. It has shown the potential of this small island on the international platform of this year's championships, even placing in two races.

Mr Ciantar told The Sunday Times: "My company has been in the boatbuilding business for many years, having already exported its products abroad. Powerboat P1 has given me a measure of where we are.

"We started off as a wild card entry in Malta and we did well; once we entered the scene in Sardinia, we excelled, compared to the other boats who have massive budgets. We intend to compete next year but we need Malta to be on the calendar as we need local sponsorship to cover the expense involved. In return for being on board, the championship puts us as a company on the international scene, enabling us to exposure our products."

Mr Caruana was approached by KBL Powerboat Management to assist with the local arrangements for the Malta race. He commented: "I did not imagine that I would end up doing all the championship races with Powerboat P1. It has been a great experience but best of all I am proud of being part of this international set-up.

"It has been an excellent showcase for my services, I have travelled to different countries and got massive exposure. I believe it is something that Malta has to be on board for to benefit from what can be an excellent showcase for the island and its services."

Mr McDonald believes that a Malta pavilion could be set up at every race venue in the 2005 season, promoting Malta on multiple levels including tourism; doing business in Malta; property investment; and finance and wealth management, through the expertise of its skilled, multilingual workforce.

Exposure for Malta in the 2004 season included production of a top-level international television highlights programme on the Grand Prix of Malta; multiple international television broadcasts of the Malta GP to a potential audience of more than 250 million people; references to and footage from the Grand Prix of Malta linked to the other Grand Prix programmes throughout the World Championship season; printed media coverage in countries throughout Europe, including the UK, Italy and Scandinavia;

Web media coverage in countries around the world; and continuous availability of Malta Grand Prix information on the Website at www. powerboatp1.com. He also pointed to significant benefits to the local economy, including local exhibition and transportation companies, services and tourism-related companies.

"It would appear that Malta has a wonderful opportunity to work with the UIM Powerboat P1 World Championship to create an unrivalled international marketing platform, Mr McDonald said. "This is a high calibre world championship on water, which is a perfect fit for Malta's biggest asset, the sea. This is a win-win situation for everybody, Maltese tourism, Maltese business and its people."