Hong Kong Tramways Faces Challenges

Hong Kong Tramways is currently grappling with intense competition from various public transport alternatives as passenger numbers linger below the levels seen before the pandemic, according to the city’s Transport Advisory Committee.

Fare Adjustment Proposal

During a recent meeting, the advisory body reviewed a fare adjustment proposal from Hong Kong Tramways, which aims to address ongoing financial challenges. The tram operator is seeking a significant fare increase of 10% for adult tickets, raising the price from HK$3 to HK$3.30. Moreover, concessionary fares are also on the chopping block; children's fares may see a 6.7% rise from HK$1.50 to HK$1.60, while senior citizens' fares could increase by 15.4%, pushing the price from HK$1.30 to HK$1.50. Notably, the fare for monthly passes is proposed to remain unchanged, likely in an attempt to retain loyal customers.

Competition and Ridership Decline

Stephen Cheung, chairman of the Transport Advisory Committee, highlighted the challenges faced by the tram service, stating that it is indeed “facing fierce competition” from other modes of transport. He noted the disappointing recovery in ridership, which has not rebounded to pre-pandemic levels. Currently, Hong Kong Tramways sees an average of 134,000 passengers daily, which represents a stark decline of 10.3% from the 149,400 passengers recorded in 2019, just before the onset of COVID-19.

Evaluation of Fare Increase

The advisory committee considered various factors in the fare increase evaluation, such as the tram company’s financial forecasts and existing improvement projects. Cheung reassured the public that any fare increase would be carefully weighed to ensure it doesn’t significantly burden riders.

A Historic Operator

Founded in 1904, Hong Kong Tramways prides itself on operating the largest double-deck tram fleet globally, comprising 165 tramcars. However, with operational costs rising and supplemental income fluctuating, the company faces a tough road ahead.

Looking Ahead

As we look forward, the bureaucratic process for the fare increase involves the committee drafting a recommendation for the Government, which will ultimately be reviewed by the Chief Executive in Council. Stay tuned as this situation unfolds and check back for updates that could alter your commuting experience in Hong Kong.