After the introductory presentation you can use all sorts of boxes (you can ask them to bring one each or prepare them yourself) and name them "supermarket", "hotel", etc. and then make a few streets on two or four desks. Then you can ask them questions like:
Is there a disco in the town? (Yes, there is. etc.)
Where is the hotel? (It �s in Hill Street, next to the school.)
And you can place a small toy car in front of a building and ask the students the way to another building. And you move the car according to the directions they give you.
Next step (of course): you give them the cues for asking and giving directions (from - to) and another student drives the car, not you.
You could also move the desks and label them "hospital", "hotel", "school" etc. The space between the desks is then changed into streets and given names, too. You can simply use paper for that.