The Chief Executive-in-Council today gave consent to Hong Kong Tramways (HKT) to alter its fares starting May 12, when passengers aged 12 or above will pay $3.3 for a tram ride, up $0.3 from the current $3.
Child fares will increase from $1.5 to $1.6, while for people aged 65 or above tickets will go up from $1.3 to $1.5.
The Government said it took into account various factors when assessing the fare increase application, such as the service quality and quantity, HKT’s planned improvement projects, changes in operating costs and revenue since its last fare adjustment, and the likely public acceptability etc.
Under the current fare adjustment, the $260 monthly ticket will remain unchanged so as to alleviate the impact on passengers who travel by tram for their daily commute.
Since the previous fare adjustment in July 2022, HKT has been facing competition from other modes of public transport.
Meanwhile, tram service patronage has not recovered to pre-pandemic levels and the potential to further increase non-fare box revenue, currently accounting for about 50% of HKT’s total revenue, is rather limited.
Moreover, operating costs and staff costs have been rising continuously, and the company will continue to invest in improvement projects, including the renewal of tram tracks and upgrading tram cars to provide more stable rides, as well as safer and more comfortable journeys.
Having considered all relevant factors, the Government considered the fare increase necessary for maintaining HKT’s stable operation and that the proposed increase level is acceptable.
After the fare increase, the tramway remains the most economical means of transport serving the northern shore of Hong Kong Island, the Government added.
