Hong Kong’s Star Ferry Company is seeking to double the fares of its two franchised routes in an attempt to reverse heavy losses suffered since 2018. It also proposed charging elderly passengers HK$2 rather than offering them free rides.
According to a document submitted to the Legislative Council on Monday ahead of a transport panel meeting on Friday, the ferry asked to increase its fees to up to HK$8.4 per trip for the routes between Central and Tsim Sha Tsui, and Wan Chai and Tsim Sha Tsui. The application was made back in February.
“Star Ferry’s financial situation has been deteriorating in recent years; it has been recording losses since 2018. In 2021, Star Ferry recorded a loss of over [HK]$37 million,” the document detailing application read.
Currently, it costs between HK$3.6 and HK$4.2 per trip for an adult to travel between Central and Tsim Sha Tsui on a weekend or public holiday, depending on whether one sits on the upper or lower deck. The fare is cheaper on weekdays, ranging from HK$2.6 to HK$3.2.
The current prices for the Wan Chai route are HK$4.2 on weekends and public holiday and HK$3.2 on weekdays – there is no upper or lower deck option.
The proposed fare hike would mean that a Sunday boat ride from Central to Tsim Sha Tsui would cost HK$8.4 for an adult. Children and disabled patrons will pay HK$5, instead of HK$2.5.
The company also planned to scrap free rides for people aged 65 or above, instead offering a concessionary fare of HK$2 per trip under a government scheme.
‘Public acceptance’
In the same document, the government agreed that “Star Ferry has been providing proper and efficient services to the public” and that its business and income have been affected by a number of factors including rising operation costs and the Covid-19 pandemic.
The government was of the view that the company “is in an urgent need to adjust its fares in order to improve its financial viability.”
“Nevertheless, the rate of fare increase for the two franchised routes requested by Star Ferry ($1.8 to $4.2 per trip) is nowhere low. The Government will listen carefully to Members’ views and strike a proper balance taking into account different factors including public acceptance of the proposed fares,” the government wrote in its preliminary assessment.
Deep in red
Star Ferry was approved to increase its fares in 2020, with the new fees taking effect in February last year.
Star Ferry has been recording losses since 2018, according to the Legco paper. It made a loss of HK$2.71 million in 2018, and quickly got worse. The loss snowballed to more than HK$16.3 million in 2020 and HK$37.2 million last year.
The company’s patronage also fell significantly – from an average of 53,900 people in 2018 to 23,300 in 2020. The figure rose slightly to 26,200 last year, but that was still less than half compared to the 2018 standard.
Lawmakers are expected to discuss the matter on Friday.
