The city’s Executive Council on Tuesday approved Hong Kong Tramways’ plan to increase its fares.
Starting July 11, a single trip for people aged 12 or above will go up from HK$2.60 (US$0.33) to HK$3.
For children aged 3 to 11, the fare will rise from HK$1.30 to HK$1.50.
The price for those aged 65 or above will increase from HK$1.20 to HK$1.30.
The monthly ticket will go up from HK$220 to HK$260, while the tourist ticket will be canceled.
A government spokesman said that when assessing Hong Kong Tramways’ fare increase application, the government has, in accordance with the established policy and mechanism, taken into account various factors.
They include the quality and quantity of service provided and the planned improvement projects of the company; the changes in operating costs and revenue since its last fare adjustment; its forecast of future costs, revenue, profit and return; and how likely the public is to find the increase acceptable.
He also noted that since its last fare adjustment in July 2018, the company’s patronage “has been decreasing and the fare revenue has also correspondingly dropped due to the competition from other public transport modes, as well as the prolonged [COVID-19] pandemic and the necessary social distancing measures.”
Hong Kong Tramways’ profit margin has plunged from 18 percent in 2018 to -1.3 per cent in 2021.
“Having considered all relevant factors, the government considered the fare increase necessary for maintaining [the company’s] stable operation, and that the proposed increase level by [the company] is acceptable,” the spokesman said.
Despite the fee hike, trams remain one of the most economical means of transportation in Hong Kong.
