LCQ10: Kaito ferry services
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Question:
According to a paper submitted by the Government to the Panel on Food Safety and Environmental Hygiene of this Council in June this year, the Agriculture, Fisheries and Conservation Department is exploring with the Marine Department the feasibility of allowing "dual uses" of Class III fishing vessels (i.e. allowing such vessels to carry out fishing activities and, subject to certain conditions and prerequisites for safe operations, to carry passengers at sea for leisure fishing). However, some operators of kaito services have expressed concern about this, pointing out that there has been a continuous decline in their patronage as a result of Hong Kong people going north for spending, and they are worried that the "dual uses of vessels" will further reduce their room for operation. In this connection, will the Government inform this Council:
(1) whether it has compiled statistics on the patronage of each of the regular kaito ferry service routes in the past three years, as well as the number of kaito ferry service routes added or cancelled during the same period;
(2) how the Government ensures that the "dual uses of vessels" will not impact operators of kaito services currently holding Class I licences;
(3) as some operators of regular kaito services have relayed that they are in dire straits in the face of the continuous decline in patronage and continuous increases in operating costs such as insurance premiums, maintenance costs, fuel costs and staff salaries, of the measures put in place by the authorities to support the kaito service sector; and
(4) whether, in order to resolve the plight of kaito services and facilitate their long-term development, the authorities will set up a special task force to follow up; if so, of the details; if not, how the authorities will promote the sustainable development of kaito services and facilitate their alignment with the Government's efforts to develop island tourism?
Reply:
President,
Most kaito ferry services are not public transport services used by the general public daily. Many of them are mostly intended for tourism or recreational purposes and operate on a relatively small scale, offering non-regular services and providing waterborne transport services to remote locations in Hong Kong that are generally inaccessible by land. As at June 30, 2025, there were 14 regular and 55 subject-to-demand kaito ferry routes in Hong Kong.
In consultation with the Environment and Ecology Bureau and the Tourism Commission, my consolidated reply to the question raised by the Hon Frankie Yick is as follows:
(1) The patronage of the regular kaito ferry routes in the past three years (2022 – 2024) is at Annex.
During the same period, there were respectively five additional and reduced regular kaito routes, and there are 14 routes at present. Among the reduced routes, the "Peng Chau – Discovery Bay (via Trappist Monastery)" route (PC 6) was changed from a regular kaito route to a licensed ferry route in 2023.
(2) According to the Merchant Shipping (Local Vessels) (Certification and Licensing) Regulation (Cap. 548D), vessels licensed as Class III vessels can only be used for fishing and related purposes, and not for carrying passengers.
The Agriculture, Fisheries and Conservation Department (AFCD) is exploring the feasibility of allowing Class III fishing vessels to carry passengers at sea for leisure fishing or activities promoting local fishing culture (i.e. "dual uses of vessels"), subject to certain conditions and safety prerequisites, with a view to facilitating capture fishermen to switch to and develop leisure fisheries. The directions for exploration include matters relating to modification standards for fishing vessels and insurance, and stakeholders will be consulted in a timely manner.
The AFCD's initial concept of the positioning of "dual uses of vessels" is to promote the development of leisure fisheries and fishing culture. Proposed activities should include fisheries-related elements, such as fishing demonstrations using specific gear, handlining tutorials, guided tours of fishermen's culture and fisheries workshops, rather than simply carrying passengers for sea cruising or island excursions. The positioning of "dual uses of vessels" activities is different from that of kaito ferries providing fixed-route services.
(3) and (4) The Government's established policy is that public transport services should be run by the private sector in accordance with commercial principles to enhance efficiency and cost-effectiveness. In the past, there was basically no direct subsidy from the Government for public transport services.
The daily patronage of most kaito ferry services (including regular kaito ferry routes) is generally low, with unstable demand due to factors such as weather and holidays. As such, the Transport Department (TD)'s monitoring of kaito ferry services is relatively flexible for facilitating the operators to adjust their business models and strategies in response to market demand and operating conditions. For instance, the TD allows operators to adjust frequencies, fares and timetables subject to demand, and exempts them from the requirements to provide audited financial information, etc.
Also, the Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities (the $2 Scheme) has been extended to cover kaito routes approved by the TD since February 27, 2022. Currently, 13 regular kaito ferry routes are covered by the $2 Scheme, thereby facilitating more beneficiaries to use the relevant kaito services.
With regard to aligning with the development of island tourism, the TD has maintained close communication with relevant departments (including the Tourism Commission) to assess passengers and tourists' demand for waterborne transport services, and has proactively invited operators to operate specific routes in view of the traffic demand at certain areas. For example, in 2023, the TD took the initiative to invite operators to operate the "Sai Kung – Kau Sai Village/High Island" and "Sha Tau Kok – Lai Chi Wo/Ap Chau/Kat O" kaito ferry routes to meet the tourism-driven demand at relevant areas.
In addition, the TD actively co-ordinates government departments to provide assistance on matters relating to kaito ferries (including berthing facilities, vessel licensing and route planning). The TD will continue to liaise with ferry operators to facilitate their applications for operating suitable and feasible new kaito ferry routes, and closely follow up on their operation situation and actual needs, including convening meetings with other departments to discuss appropriate measures to facilitate the long-term development of kaito ferry services.
Ends/Wednesday, July 23, 2025
Issued at HKT 11:55
Issued at HKT 11:55
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