Oil spill incident: Seaside businesses dread 3-month closures, some struggling to stay afloat

SINGAPORE: Businesses most impacted by the oil spill fear that they cannot tide over a three-month hiatus and a potentially lengthy compensation process.  

Other affected businesses are pivoting their operations to cover waters not affected by the oil spill, which took place after a dredger struck a stationary bunker vessel and ruptured an oil tank at Pasir Panjang Terminal two weeks ago. 

On Monday (Jun 24), Minister for Sustainability and the Environment Grace Fu said at a press conference that the clean-up could take three months, after which affected areas will be progressively opened. 

Areas that were not as badly hit could be opened earlier, she added. 

An owner of a water sports company near East Coast Park said the situation feels similar to when his business had to cease operations during the peak of the COVID-19 pandemic.

“It’s just like COVID ... just that only the businesses along the coast are affected,” said Mr Ho Kah Soon, director of Constant Wind Sea Sports Centre. 

"HOPEFULLY THE GOVERNMENT CAN LEND A HAND"

Mr Ho said he was at a loss when the three-month timeline was announced. “We are still discussing (what to do) and haven’t come up with a concrete plan,” he told CNA. 

His company, which holds courses like sailing and windsurfing, has suspended all sea sports since the oil spill on Jun 14. The business cannot take any chances on customers going into the sea until the authorities say that the water is safe, he said. 

“We won't want to take a chance (in opening up). If anyone gets sick, we will be liable,” he said. “We will close for another week and we will see what happens.” 

His business has already racked up a five-figure loss in the past week-and-a-half, and Mr Ho fears this will keep going up as the crisis drags on. 

“We are dipping into our reserves right now,” he said. 

The business can stay afloat for one to two weeks, but beyond that, it would be a struggle, he added. 

The situation is not helped by what could be a lengthy process to get compensation. 

Mr Ho said he contacted British Marine, the insurer of the bunker vessel, for compensation. The insurer said it has been inundated with claims and that the process may take some time. 

As he waits for news of compensation, he hopes the government can lend a hand. 

“Hopefully, the government can lend a hand in assistance (and) come up with packages … like they did during COVID,” said Mr Ho. “Any help will be very much appreciated.” 

Over at Ola Beach Club at Sentosa's Siloso Beach, business has not ground to a halt, but it has been badly battered since Jun 14. 

"The impact is tremendous to our business as the water sports activities are a focal point to our business," its spokesperson said. 

The beach club rents out equipment such as kayaks, stand-up paddleboards and banana boats. Its food and beverage business is a "supporting service", it said. 

"We have observed a catastrophic fall in F&B patronage and do anticipate that the business will be negatively impacted for the duration when the water activities are not permitted." 

The beach club is in discussions with legal advisers on its next course of action, but like Mr Ho, it hopes for some financial support. 

"Any and all support is always much appreciated and needed for these unprecedented situations," it said. 

BUSINESSES PIVOTING

Other than East Coast Park and Sentosa, businesses that operate in the Southern Islands area have also been badly hit. 

On Jun 16, the beaches at St John's, Lazarus and Kusu islands were closed. Oil slicks were also spotted at Marina South Pier.

Kayakasia has had to stop its kayaking tours to Sentosa and the Southern Islands. To make things worse, the three-month closure timeline falls in the company's peak season, its founder Sim Cher Huey said.

“July to September are significant months for us as these are the months with the best waters to paddle there,” said Mr Sim. “So it means this year we will be doing much less of these trips.” 

Instead of seeking compensation, he plans to increase the number of tours to other locations such as around Pulau Ubin. 

“We probably will just run more trips in other parts of Singapore to make up for the loss of our Southern Island and Sentosa trips,” he said, citing the laborious claims process as the deterring factor in pursuing compensation. 

However, he still expects to make a loss, as about 50 per cent of his company’s tours are to the waters around the Southern Islands. 

“(There will) definitely be some losses and won’t be fully able to pivot because some dates are just not suitable to go to Ubin but only to the Southern Islands,” he said. “So in a way, these dates are lost.” 

At Lazarus Island, visitor numbers to “tiny houses” operated by homegrown firm Big Tiny for overnight stays have fallen due to the oil spill. 

Big Tiny co-founder Jeff Yeo said that since Jun 14, bookings have come down by 29 per cent. A fifth of these bookings were cancelled and the rest were postponed. 

“Guests are looking to escape from the hustle and bustle of city life and spend time with loved ones on the beach, so with the beaches closed, they might not want to book accommodations,” said Mr Yeo. 

The company is tabulating its losses and plans to submit a claim to British Marine. 

TWO SENTOSA BUSINESSES CLOSED 

At Sentosa, all beachfront businesses are open, except for two that have sea activities – floating obstacle course Hydrodash at Palawan Beach and seaside night show Wings of Time at Siloso Beach. 

Mount Faber Leisure Group, which runs Wings of Time, said that the attraction has been closed since Jun 15 for the ongoing clean-up by Sentosa Development Corporation and government agencies.

Its other attractions at Siloso Beach, such as Sentosa SkyJet and Sentosa Musical Fountain, are also closed and will reopen when safety standards are met. 

Hydrodash declined to comment for this article. 

CNA also asked Sentosa Development Corporation whether visitor numbers have been affected. It did not provide information on this but said it would continue to monitor the impact on businesses.