The Chief Executive in Council today (June 7) gave consent to Hong Kong Tramways Limited (HKT) to alter its fares, in accordance with section 51 of the Tramway Ordinance (Cap. 107). The revised rates of fares (see table below) will come into force one month after publication in the Gazette (i.e. July 11, 2022).
 

	Existing fares	Revised fares (Change)
Person aged 12 or above	$2.60	$3.00 (+$0.40)
Child (aged 3 to 11)	$1.30	$1.50 (+$0.20)
Monthly ticket	$220.00	$260.00 (+$40.00)

 
     In addition, the fare for the elderly (aged 65 or above) will increase from $1.20 to $1.30. The tourist ticket will be cancelled.
 
     A Government spokesman said that the Government should ensure that HKT would have sound financial capability in providing economical, efficient and quality tram services at reasonable fares. In this connection, when assessing HKT's fare increase application, the Government has, in accordance with the established policy and mechanism, taken into account various factors, including the quality and quantity of service provided and the planned improvement projects of HKT; the changes in operating costs and revenue since HKT's last fare adjustment; HKT's forecast of future costs, revenue, profit and return; and the likely public acceptability.

     Since its last fare adjustment in July 2018, HKT'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 pandemic and the necessary social distancing measures. The potential to further increase non-fare box revenue is also rather limited. HKT's profit margin has plunged from 18 per cent in 2018 to -1.3 per cent in 2021. Given HKT's prevailing financial situation, the fare adjustment is necessary for maintaining its financial sustainability.
 
     "HKT has been providing emission-free and affordable services over the years. It has a unique historical significance and has always been received by the local community and visitors, and has represented the collective memory of Hong Kong citizens. Furthermore, HKT has implemented various improvement projects as well as introduced innovative measures to enhance tram services with a view to providing a safer and more comfortable experience for passengers, while preserving its historical value. Having considered all relevant factors, the Government considered the fare increase necessary for maintaining HKT's stable operation, and that the proposed increase level by HKT is acceptable," a Government spokesman said.

Ends/Tuesday, June 7, 2022
Issued at HKT 14:00

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