Hong Kong tram operator seeks to raise fares by 11.5 per cent as firm struggles to cope with falling ridership, revenue
- Hong Kong Tramways has proposed raising normal fares from HK$2.60 to HK$2.90, with prices for children and elderly to be increased to HK$1.40 and HK$1.30 respectively
- Ridership declined 24 per cent last year as a result of pandemic, French-owned company says
In a statement released on Friday, Hong Kong Tramways said it had submitted a fare adjustment application to the Transport Department proposing to raise the normal fare from HK$2.60 (33 US cents) to HK$2.90.
The firm also suggested raising fares for children and the elderly by 10 HK cents, from HK$1.30 and HK$1.20 to HK$1.40 and HK$1.30 respectively.
Affectionately known as “ding dings” for the sound of their bells, the trams are one of the earliest forms of public transport in the city, stretching back more than 117 years.
The operator said it hoped the application could be approved and implemented next year, adding the fare increases would help it cope with rising operating costs.
The French-owned company, which previously raised fares in July 2018, said ridership had plunged 24 per cent last year as a result of the pandemic.
“In addition, sources of revenues from TramOramic and Party Trams have been cut off due to the long halt in the services for anti-pandemic reasons,” it said.
It also said the cumulative rates of fare increase over the past 20 years had been “far lagging behind” the inflation rate which had grown by over 45 per cent, compared with only a total increase of 60 HK cents in the two fare adjustments in 2011 and 2018.
Tram company eyes new range of ‘ding ding’ products to keep service afloat
“Facing an increasingly harsh business environment with rising operating costs, it is crucial for Hong Kong Tramways to implement this fare adjustment … Trams still remain the most affordable means of public transport in Hong Kong,” it said.
The firm added that it had the responsibility of preserving the heritage of trams. “Hence, the maintenance of our tram system is more demanding than ordinary public transportation in terms of craftsmanship, tram fleet maintenance, repair and renewal work,” it said.
The public transport firm has been operated since 2009 by a joint venture between French-based public transport companies RATP Dev and Transdev. It runs 165 tram cars – the world’s largest fleet of such double-deckers.
