Singapore Flyer’s woes take a new spin after Merlin talks collapse

SINGAPORE — Almost a year has passed since the troubled Singapore Flyer was placed under receivership, but its fate is now left hanging after Merlin Entertainments, the British firm behind the iconic London Eye and LegoLand theme parks, abandoned talks to acquire the S$240-million attraction.

TODAY has learnt that 10 months after discussions between Merlin and receiver Ferrier Hodgson were reported to have first begun, talks between the two parties have broken down.

Details on why the discussions stopped are scarce; Merlin chief executive officer Nick Varney was reported as recently as February as saying the British firm hoped to buy the attraction out of administration within two months.

When approached by TODAY for comment on the talks breaking down, a Merlin spokesman said: “We are no longer in talks regarding the Flyer. We were contacted by the receiver during the course of their process last year. However, we have no plans related to the Singapore Flyer at this time.”

However, a lifeline could still be on the horizon for the attraction, whose disgruntled tenants say they have been left to face a ghost town.

The Singapore Tourism Board —which owns the land it sits on — told TODAY this week discussions are still ongoing with stakeholders. It declined to confirm if the talks were with another potential buyer.

“The STB has been closely engaging the various parties involved to ensure the best possible outcome that enhances the tourism sector. As discussions are still ongoing, we are unable to share further details,” a spokesperson said.

Ferrier Hodgson partner Tim Reid also told TODAY an announcement would be made soon, but he declined to comment on Merlin’s pull-out.

As TODAY reported last July, Merlin was considering buying the Flyer to expand its presence in Asia and had started discussions with the receiver.

Five months later in December, Merlin said talks were still ongoing as it announced plans to open a Madame Tussauds wax museum on Sentosa.

Ferrier Hodgson on its part said it had received interest from several parties and was reviewing the offers.

At 165m, it was the world’s tallest Ferris wheel until March, when the 167.6m High Roller opened in Las Vegas. Plagued by poor attendance, the Flyer was placed under receivership at the end of May last year for failing to meet financial obligations to banks, just five years after it was launched to great fanfare.

Dr Michael Chiam, a senior lecturer of tourism at Ngee Ann Polytechnic, said that for it to appeal to potential buyers, it needs to be reinvented as part of a larger cluster of attractions.

“Right now, it is a standalone attraction. If it is to be viable, it must be a product that is attractive to both locals and tourists. We have to reprogramme it, make it more innovative. Perhaps the STB could facilitate the redevelopment of the attraction, make it a larger offering,” he said.

When TODAY visited the Flyer on Tuesday, the shops were half empty. Over about two hours, three waves of tourists arrived in buses.

Vendors at the Flyer estimate that about 90 per cent of the crowd there are tourists, but lamented that large tour groups on tight schedules limit the amount of time for shopping, and that any income from tourists visiting the ride barely trickles down to them.

Further aggravating matters, promotional efforts by its management slowed down after the attraction entered receivership, hitting sales even harder, they said.

“Business here has not been good, but these few months it has been worse,” said Mr Quek Ing Hoe, a manager at luxury handbag store NanKai.

Another tenant, Mr Tan Kiam Hua, the 55-year-old owner of Satay Bee Hoon stall at Food Trail, said he is one of the three original tenants left at the local-themed food court as the rest have moved away because they could not make enough money.

The Flyer needs to be promoted as an entire attraction, and not just a ride, the vendors emphasised.

However, even if it were to secure a new owner soon, the challenges are aplenty.

“The Singapore Flyer is a very old attraction … It’s been in the market for more than five years. (Tourists) don’t find it that interesting because it’s very much (like being) enclosed in a capsule for over 30 minutes,” said Mr Bernard Yu, head of SingExpress Travel’s inbound department.

Similarly at SH Tours, assistant general manager Catherine Khng said: “It’s not that popular any more. It’s rather slow for us. I think the demand for Flyer is not there now.”