Hong Kong’s Star Ferry to increase fares by up to 56 per cent on 2 cross-harbour routes as operator’s ‘overboard’ proposal rejected
- Adult fares for upper deck seats increased to around HK$5 on weekdays and HK$6.50 on weekends and holidays
- Executive Council expects Star Ferry to break even, or make slight profits, in one to two years with the price increase
Journeys aboard the Star Ferry across Hong Kong’s Victoria Harbour will cost up to 56 per cent more this spring after the government approved a fare increase for the 125-year-old transport operator struggling to remain in business as its financial woes mount.
The increase, taking effect on April 3, was less than what management had sought, but the key decision-making Executive Council expected the pricier tickets would allow the company to break even or earn a small profit in one or two years, sources told the Post on Tuesday.
Adults riding on the upper deck of the ferry running from Central to Tsim Sha Tsui will have to pay HK$5 on weekdays, up from HK$3.20, a 56 percent increase. Weekend journeys will cost HK$6.50, up from HK$4.20, a 55 per cent jump.
Fares for the lower deck will increase from HK$2.60 to HK$4 for weekday trips, and from HK$3.6 to HK$5.6 for weekend ones.
Full-price fares for the ferry going from Wan Chai to Tsim Sha Tsui will increase to the same levels.
The children’s fare will increase from HK$2.80 to as much as HK$3.90, depending on the day, route and deck involved. The elderly and people with disabilities will no longer ride for free and must pay the HK$2 concessionary rate under the government’s discounted public transport scheme.
Star Ferry had suggested doubling the fares for adults to HK$6.40 and HK$8.40 on weekdays and weekends, respectively.
Exco also rejected Star Ferry’s proposal to double the price of its monthly tickets to HK$320, approving only a HK$30 increase to HK$190.
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In asking the government to raise fares last February, Star Ferry pointed to more than HK$85 million in losses racked up since 2020 as the Covid-19 pandemic hammered the economy. The company owed banks more than HK$72 million as of last year.
In a paper submitted to the Legislative Council, the Transport and Logistics Bureau said that given the company’s financial situation, the government recognised “an urgent need” to raise prices but the requested increase would have been “too drastic for the public”.
“After the fare increases, Star Ferry is still the most affordable means of cross-harbour public transport, with fares about 30 per cent to 50 per cent lower than MTR or franchised bus fares,” a government spokesman said.
The company’s tourist patronage had dropped significantly since the Covid-19 pandemic emerged, and Star Ferry had been losing money since 2018, he said.
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“With the easing of anti-epidemic measures, Star Ferry’s patronage is expected to recover gradually. Yet the long-term impact of the pandemic remains to be seen. Coupled with rising operating costs of Star Ferry expected, there is a need for Star Ferry to adjust its fares,” he added.
Transport authorities in November said the company had “gone overboard” with its proposal to double fares and promised the final increase would take into account the company’s financial difficulties and the public’s willingness to absorb another price hike for a basic service.
The Star Ferry fare changes were among a flurry of transport and public utility price increases on the cards for Hongkongers, with urban taxi operators asking the government to raise the flag fall charge by HK$6 from the present HK$27 last December.
General manager David Chow Cheuk-yin said earlier he planned to rescue Star Ferry by increasing non-fare revenue.
Hong Kong’s Star Ferry went overboard with fare proposal: transport authorities
The firm was in talks with the government on rejuvenating and linking its three piers in Central, Wan Chai and Tsim Sha Tsui into a cultural and entertainment hotspot, similar to Fisherman’s Wharf in San Francisco, with a raft of activities to mark its 125th anniversary this year.
Lawmaker Bill Tang Ka-piu, of the Federation of Trade Unions, said he had no choice but to accept the fare increase.
“But that should not be the end,” Tang said. “ The government should step up its efforts to work with Star Ferry in boosting its tourism and commercial value by using its piers and facilities so that the operator doesn’t have to resort to fare hikes again to ensure its survival in the future.”
Ben Chan Han-pan, chairman of the legislature’s transport panel, said he believed Exco’s decision had already taken into account the different views in society, but warned that the fare increase might be counterproductive as it could drive passengers away.
He echoed Tang’s suggestion that Star Ferry should expand its non-fare revenue to strengthen its longevity.
Additional reporting by Jeffie Lam
