Hong Kong’s Star Ferry service asks to double some charges to as much as HK$8.40 a trip
- Fare application to government also asks permission to axe free travel for the elderly
- Star Ferry, which has warned survival not certain, has recorded annual losses since 2018
Hong Kong’s famous Star Ferry service asked to double fares on two routes across Victoria Harbour in the wake of a fall in passenger numbers and income, as well as tough competition from other transport operators, the government said on Monday.
The ferry service, which earlier warned its survival was not certain, also said it wanted to stop its 20-year tradition of free trips for elderly people.
The company wants to raise adult upper-deck fares on the Central-Tsim Sha Tsui route from HK$3.20 (41 US cents) to HK$6.40 on weekdays and from HK$4.20 to HK$8.40 on weekends and holidays.
According to the proposal, lower-deck fares would be doubled to HK$5.20 from Monday to Friday and to HK$7.20 at the weekend and on holidays.
For the Wan Chai-Tsim Sha Tsui route, the fares for adults would be doubled to HK$6.40 on weekdays and HK$8.40 at weekends and on holidays.
Depending on the travel date, route and deck involved, children would be charged HK$3.60 to HK$5 a trip.
The elderly, who at present are not charged to use the ferry, could pay as much as HK$5 a trip. But the company said it would apply to join the established HK$2 flat fare discounted public transport scheme for the elderly and disabled, which was launched in 2012 and covers MTR lines, buses, ferries and green minibuses.
The fare application – with increases ranging from HK$1.80 to HK$4.20 a trip – was revealed in a paper submitted by the Transport and Logistics Bureau to the legislature on Monday.
The company also asked for permission to double the fare for its monthly ticket to HK$320 and the rate for a tourist ticket to HK$64.
The government said the proposed increases were “nowhere low” and added that it would consider several factors before it approved the proposal, including public acceptance.
Despite the ferry service’s fares increasing by an average of 16.5 per cent in 2021, the operator’s revenue still dropped by about 47 per cent compared with 2018.
The company has recorded annual losses since 2018. With a loss of over HK$37 million last year and an accumulated deficit that exceeded its total assets, it has taken on debt to keep the ferry service afloat.
Passenger levels remained low after the pandemic hit, especially during the city’s fifth coronavirus wave, which saw the service hit a record low in the first quarter of the year.
There were an average of 10,700 trips a day in March, just 20 per cent of the levels recorded in the same month in 2018.
The steep fall in passenger numbers and revenue sparked concern that the ferries were on the brink of ceasing operations after 124 years, but the company earlier told the Post it had no plans to close down.
Hong Kong’s Star Ferry aims to keep going with fare review, new pier attractions
The city in recent months has relaxed its tough travel restrictions. Arrivals no longer have to go through hotel quarantine but three days of medical surveillance instead, with some restrictions on movement and group tour visitors will also be allowed to enter designated attractions.
But the government paper remained pessimistic about Star Ferry’s future passenger numbers.
“Despite the subsiding pandemic and gradual easing of anti-epidemic measures, it is expected that Star Ferry’s local patronage will hardly return to the pre-Covid level,” the paper predicted.
The government explained that the company faced competition from other public transport services, as well as changes in the work and travel patterns of the public.
It added that the return of visitors to the city, which the company relied on, remained uncertain.
The company’s operating costs were also expected to rise through a combination of increased staff costs, vessel maintenance expenses and higher fuel prices.
Lawmaker Michael Tien Puk-sun, a member of the legislature’s transport panel, said the fare rises could help, but he opposed an increase in the cost of monthly tickets as many members of the public relied on them to cross the harbour at a cheaper price.
Hong Kong’s famous Star Ferry to raise fares for two routes across Victoria Harbour
Legislator Ben Chan Han-pan, of the Democratic Alliance for the Betterment and Progress of Hong Kong, added the proposed increases were too high and could hurt rather than help the service.
He highlighted that the adult railway ticket price from Wan Chai or Central to Tsim Sha Tsui was around HK$10.
“I worry that the fare increase may lead to a decrease in patronage as it will have a similar price to the railway company and the loss might outweigh the gain,” Chan said.
He said the ferry’s proposed fare increment should be limited to HK$2 at most.
Chan said the government could assist the ferry operator to increase its non-fare revenue, such as by improving its piers to boost rental income.
He added that he was sure the famous ferries could still attract tourists when they returned.
Hong Kong Tramways, another famous city transport service, raised its fares by 15.4 per cent in July as the company faced similar problems with fewer users and a drop in revenue because of the pandemic.
