Star Ferry's application for fare rises on its two inner-harbour routes received the green light yesterday after a year of assessment by the government, but the full increase will not come into force until next year.
The Executive Council approved fare increases of 30 to 80 HK cents on the two routes between Central and Tsim Sha Tsui, and Wan Chai and Tsim Sha Tsui - to be introduced in two phases.
In the first phase, starting from March 29, Star Ferry will add 10 HK cents to its current fares of HK$1.70 and HK$2.20 during the week, and add 30 HK cents on Saturdays, Sundays and public holidays.
The second increment will be imposed from January 1 next year, putting fares between Central and Tsim Sha Tsui up to HK$2 and HK$2.50 on weekdays and to HK$2.50 and HK$3 on weekends and public holidays.
Star Ferry general manager Johnny Leung Tak-hing said the company decided to adjust the proposal itself in light of the economic downturn and its impact on passengers. However, he stressed that the fare rises, even when fully implemented, would not be able to offset losses quickly.
'By the end of this year, we will incur a loss of HK$5 million; even after implementation of the second phase, we still expect a loss of HK$1 million by the end of 2010,' he said.
It was understood the Executive Council required the company to adjust its proposal because councillors considered the original increments too high.