Hong Kong's iconic tram system will implement its first fare increase in nearly two years starting May 12, following approval by the Executive Council. Adult fares will rise to HK$3.30, while child and senior fares will increase to HK$1.60 and HK$1.50 respectively, though the HK$260 monthly pass remains unchanged.
The decision comes as the 120-year-old tram network faces mounting financial pressures despite a gradual recovery from pandemic lows. Ridership continues to lag behind pre-COVID levels amid fierce competition from buses and metro services, while non-fare revenue, which constitutes half of total income, shows limited growth potential. Operational costs have climbed steadily due to inflation and workforce expenses, compounded by substantial investments in modernization projects, including track replacements and fleet upgrades.
A government spokesperson defended the adjustment after thorough evaluation of multiple factors, including the operator's financial performance since the last 2022 fare review, projected operational costs, and public affordability considerations. Officials stressed that even with the increase, the century-old tram system remains the most economical transport option along Hong Kong Island's northern corridor.
In a bid to enhance service quality, the tram company plans to launch a new mobile application in the coming months featuring real-time arrival information and improved passenger services. The fare adjustment aims to ensure the sustainability of what the government calls "a moving heritage" that has served Hong Kong since 1904, while maintaining its accessibility for daily commuters.
The modest increase reflects authorities' attempt to balance operational viability with public interest, particularly for elderly residents and students who rely on the tram's affordable fares. Transport analysts note the decision preserves the tram's unique role in Hong Kong's transit ecosystem, even as the system modernizes to meet contemporary urban mobility demands.
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