Waterfront F&B, yachting businesses still reeling in wake of oil spill
SINGAPORE – About two weeks since an incident between two vessels caused an oil spill and blackened some of Sentosa’s beaches, footfall at the International Food Street on the island nosedived by about 80 per cent and revenue tumbled by more than 50 per cent.
Food and beverage supervisor Tasha Daniel, 26, said business worsened in the second week after the oil spill, when the food street – comprising six food kiosks at the Central Beach Bazaar – drew a daily revenue of $1,000 to $2,000.
This is lower than the $3,000 earned daily in the week after the oil spill, and less than half of the $6,000 or more the food street raked in every day before the incident, said Ms Daniel.
Waterfront businesses have seen takings and footfall tumble after the oil spill on June 14 stained Singapore shores, forcing some beaches to close and water-based activities to stop.
F&B establishments and an adventure sports centre on Sentosa reported lower foot traffic and earnings, while businesses at East Coast Park were less affected. Vessel charter companies have also taken a beating.
The Wings Of Time night show in Sentosa was closed on June 30. ST PHOTO: RYAN CHIONG
On June 14, Netherlands-flagged vessel Vox Maxima lost engine and steering control and hit Singapore-flagged bunker Marine Honour at Pasir Panjang Terminal, causing about 400 tonnes of oil from the damaged bunker to spill into the sea.
In the days that followed, more than 3.4km of containment booms were laid to contain the spill.
While Sentosa’s beaches – Tanjong, Siloso and Palawan – are now open, the water is still out of bounds. Tanjong Beach is the hardest hit among the three.
FOC by the Beach, a Spanish eatery on Sentosa, told The Straits Times that crowd sizes, reservations and revenuedwindled by about 50 per cent after the oil spill.
On the first weekend following the spill, it had about half, or 166, of its reservations cancelled.
“We are very much affected,” said its spokeswoman, Mrs Ang, 38, from the corporate office of FOC Group. She requested to go only by her last name.
She believes the spill, which had made the beach unsightly and caused a stench of oil, has kept customers away.
“This incident is beyond our control as a tenant here. How can we get any assistance from the authorities to relieve our burden?” she asked.
Coastes Singapore, a seaside restaurant at Siloso Beach, noted that revenue has dropped by more than 60 per cent in the past two weeks.
“We feel the recovery time will stretch into months, given how long public perception can linger following an incident such as this,” added its spokesman.
Empty deck chairs at Coastes Singapore in the afternoon of June 30. ST PHOTO: RYAN CHIONG
Efforts to clean up the spill are entering the second phase, which involves specialised cleaning of hard-to-reach areas such as rock bunds. This process may take up to three months to complete.
At Skypark Sentosa, an adventure sports centre at Siloso Beach, a spokesperson said the smaller crowd on the island meant the attraction had gone “hours without anyone walking in”. The attraction, which is dependent on walk-in customers, reported a drop of up to 30 per cent in customer traffic.
The centre’s spokesperson said that since Sentosa is famous for its beaches, the suspension of water activities may deter visitors, particularly tourists.
“At least half of our visitors are here for the beach. Singapore is very humid, so naturally people want to take a dip in the sea.”
Lawyer Anna Toh, 37, who visited Tanjong Beach every week or two before the oil spill, said she will not visit the island as frequently until the cleanup is done.
“The really nice (beaches) are here, and now, we can’t use them for the next three months, so it’s a bit sad.”
The HydroDash water park in Sentosa was closed on June 30. ST PHOTO: RYAN CHIONG
When contacted by ST on the impact of the oil spill, six hotels on Sentosa declined comment, while five others did not respond.
W Singapore Sentosa Cove hotel said it was “not able to quantify and measure the full extent of the impact at this moment”.
Asked about changes in footfall since the oil spill, and whether help will be extended to affected tenants, the Sentosa Development Corporation (SDC), which manages and develops the island, referred ST to the Ministry of Trade and Industry (MTI). SDC is a statutory board under MTI.
An MTI spokeswoman said the oil spill has affected businesses “to varying degrees”.
“While some companies offering water-based services and near affected beaches are unable to operate or have been partially impacted, others have pivoted and shifted their operations to unaffected waters,” she said.
“Some businesses, which were affected in the early days, have also substantially recovered to pre-spill levels.”
The MTI spokeswoman said agencies will continue monitoring the situation and prioritise the safe resumption of operations.
British Marine, the insurer of Marine Honour, the boat that leaked oil into the sea, has set up a contact to receive third-party claims by those affected, and “businesses may consider quantifying their business impacts to aid in their claims”, she added.
Ms Grace Fu, Minister for Sustainability and the Environment, wrote on Facebook on June 30 that she spoke to business operators near Sentosa’s beaches.
“Understandably, footfall has dropped. But glad to hear that business has picked up slightly, and operators are positive about the progress of the clean-up.”
The Maritime and Port Authority of Singapore (MPA) declined comment when asked by ST if the authorities would provide any aid to affected parties.
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Visited Sentosa again with MOS Alvin Tan 陈圣辉 to observe the progress of the oil spill clean-up. Further progress has...
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Charter yacht concerns
Elsewhere, vessel owners have taken a hit.
Ms Evangeline Wong, chief executive of Valencia Yachts, said her firm has seen an 80 per cent decrease in revenue since the oil spill.
Valencia Yachts has five yachts for charter to places such as the Southern Islands. At the time of the spill, two of its vessels were berthed at One Degree 15 Marina, with the other three docked at the Marina at Keppel Bay.
Both marinas have since reopened.
Ms Wong said Valencia Yachts had received close to no enquiries and bookings since the oil spill happened. “It was very quiet. There were no e-mails, hardly any messages, especially during the first week of the spill.”
Ms Wong echoed other boat operators interviewed by ST in noting the unfortunate timing of the spill, which coincided with peak demand for the yachting industry.
“This was supposed to be peak season during the June holidays, so many families usually do staycations or yacht charters for a short trip,” she said, adding that her firm is still tallying its losses and cleaning costs.
Yachts berthed at the Marina at Keppel Bay on June 29. ST PHOTO: KEVIN LIM
Maritime cleaning expert Continentz Singapore’s managing director San Heng said a mid-sized oil-stained yacht could cost up to $80,000 to clean.
Mr Quek Wee Teck, president of the Association of Boat Charters Singapore, said that as at June 23, the spill has hit about 85 charter boats. About 400 trips have been cancelled, and 260 journeys postponed.
He said that while the authorities are actively involved in clean-up efforts, the potential for direct help remains unaddressed, leaving operators anxious for updates.
“The yacht charter industry is small — we’re often forgotten,” he said.
Ms Wong, who is also vice-president of the association, said the interim period will pose challenges for many boat operators.
“We’re looking forward to any forms of assistance at this point.. Anything — relief, grants, assistance — will help.”
Most East Coast Park businesses unaffected
Food vendors at East Coast Park, however, were less affected.
Only one out of seven F&B places ST interviewed, Indian eatery KNS Restaurant Singapore, said business had suffered following the spill.
Mr Kamal Raj, 34, KNS’ East Coast Park restaurant manager, said the number of customers has dropped by up to 60 per cent since the incident happened.
As at July 1, the East Coast Park beachfront remains off-limits.
Yet, Mr Jashanpreet Singh, a 26-year-old service crew member at Malay-American fusion restaurant Tash Tish Tosh, said reservations were unaffected in the wake of the spill.
Since visitors can still do recreational activities such as cycling, the park’s visitorship and the restaurant’s patronage have remained “normal”, he said.
- Additional reporting by Whitney William
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