A more modern and comfortable tram system for Hong Kong could be stalled indefinitely after Hong Kong Tramways said a 30 HK cents fare rise was far from enough to fund its multimillion renovation scheme.
The Executive Council slashed a requested fare rise of 50 cents, while approving a full HK$2 increase for taxi journeys.
An urban taxi ride will cost a minimum of HK$20 - up from HK$18 - from July 10. The flagfall was also raised by HK$2 in the New Territories and Lantau. A tram ride for adults will cost HK$2.30 instead of HK$2 from June 7. A rise of 10 cents on the concessionary fare of HK$1 for the elderly has been held over for a year.
Veolia Transport, the French operator which proposed a series of improvements after buying the tram company from Wharf two years ago, said it was disappointed.
'We will have to consider carefully our financial situation in the coming months, particularly on whether the long-term trend of declining ridership of trams can be reversed,' a spokesman said. 'The service improvement plan will have to be slower than originally planned.'
Veolia had hoped the HK$200 million renovation - including improvements to rail and traction systems, more comfortable cabins and onboard broadcasts - could reverse a decline in passenger numbers.
They have slipped by 1.5 per cent every year over the past decade.