Star Ferry fare may go up to $8.40

Ferry fares from Tsim Sha Tsui to Central and Wan Chai may be doubled to HK$8.40 as operator Star Ferry has applied to authorities for a fare hike.

Star proposes to increase fares for passengers on the upper deck on weekends and holidays from HK$4.20 to HK$8.40, and the cheapest fare for the lower deck on weekdays would double from HK$2.60 to HK$5.20.

The operator, which has been offering ferry services since 1898, has also proposed doubling the price of its monthly pass from HK$160 to HK$320 and to ditch its free ride offer for elderly passengers, replacing it with a HK$2 concessionary fare.

Star Ferry said it has been in the red since 2018, with a deficit of over HK$37 million last year.

It is currently relying on loans to stay afloat.

It also said the pandemic and the expansion of the rail network have negatively affected its business.

According to a Legislative Council paper by its panel on transport, ferry fares are around 60 to 70 percent lower than taking the MTR between Tsim Sha Tsui and Central or Wan Chai.

Records show daily average patronage dropped from around 63,000 passengers in 2008 to 53,900 passengers in 2018, which then dropped to 10,700 this March.

The government agrees Star Ferry is in dire straits and must adjust its fares to improve its finances. But it said the ferry operator must also take into account public responses before it makes a decision.

Some elderly people who frequent the ferry said the new fare would still be affordable if the free ride arrangement is scrapped, while others think the elderly should continue to be able to enjoy free rides across the harbor.

Some passengers said the increase would be too drastic.

Roundtable Legislative Council member Michael Tien Puk-sun voiced his support for the fare hike, saying Star Ferry gets its income mainly from weekend commuters and tourists. "Otherwise, the terminal is relatively remote, with not much passenger flow," he said.

But he also acknowledged about 10 percent of passengers use the Star Ferry's monthly pass, relying on the ferries to cross Victoria Harbor.

Legislators on the Legco's panel on transport generally agreed to the ferry operator's application for a hike.

Panel members also said measures taken by the administration to assist the ferry operator were insufficient and advised officials to help enhance services.

In response, the government said it will grant public transport service operators a six-month fuel subsidy as a short-term measure to help them cope.

Officials will also take into account public acceptance of the proposed fare hike.

Terence Chong Tai-leung, executive director of the Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, believes passenger volume will recover after an initial dip.