By Rachel
Hong Kong’s rail operator will implement a fare hike of up to 3.09 percent this year, which is the second increment since the introduction of a revamped formula that takes into account the affordability for the public.
The maximum fare rise, which will take effect in June, is based on a revised mechanism that factors in profits generated from property developments to limit the extent of ticket price hikes. The new fare adjustment formula, primarily influenced by the inflation rate and a specific wage index for transport workers in December, was used to determine the increase.
Based on the fare adjustment mechanism, this year’s price hike could have reached a maximum of 5.05 percent. However, given the activation of the mechanism’s “affordability cap” provision, a lower increase was resulted. The remaining 1.96 percent of the potential increase is anticipated to be postponed and implemented in the following year.
Jeny Yeung Mei-chun, the Hong Kong transport services director of the MTR Corporation, announced on Tuesday that the current concessions, amounting to HK$2.9 billion, would be maintained in the upcoming year. These concessions are unrelated to the fare adjustment mechanism and are applicable to various segments of society, including the elderly, children, eligible students, and individuals with disabilities.
Mr. Cheung, a local resident, spends over a thousand dollars each month on commuting, mainly by taking the MTR. He believes that despite the fare increases, the service quality remains the same, with frequent signal failures.
“Judging from the frequency of MTR signal failures over the past year. I don’t think it’s practical for them to be increasing the fare again when so many people have been impacted by unnecessary inconvenience.” While he finds the fare increase somewhat acceptable, given the current inflation, he hopes that the government’s monthly transportation subsidy will also be increased accordingly.
Miss. Ngai, a student from the University of Hong Kong, said while she is dissatisfied with the constant fare increase, she acknowledged that transportation costs in Hong Kong are relatively affordable compared to many other countries.
“I’m just back from a trip to Japan. To be fair, Hong Kong’s public transportation fares are comparatively lower than those in Japan,” she said. “It hasn’t gone to the extent where the fare increase is unaffordable. But I’m not sure for those with lower income as it could be a huge lump sum,” she continued.
Another train passenger, Mr. Ng, spends a little over a hundred dollars on commuting each day, occasionally using the MTR and sometimes opting for other transportation methods.
“Transportation in Hong Kong has never been affordable. Prices should be reduced instead.”
— Mr. Ng
He has noticed that the MTR rarely lowers fares but frequently increases them. As a result, he has become indifferent to these fare adjustments and finds it increasingly difficult to manage his expenses. “Regardless of the fare increase, the MTR won’t lose any passengers anyways given the lack of cheaper alternatives in the city,” he concluded.
DAB lawmaker Ben Chan, who leads the transport panel in Legco, emphasized the importance of the rail operator fulfilling its corporate responsibility to alleviate the pressure on citizens. He expressed concern that the fare increase would impose an additional burden on the people, further exacerbating their hardships amid the current economic situation.
“The MTR can consider introducing additional discounts in a transparent manner, such as providing a free ride after 10 paid rides or more frequent 50% Thank You Day discounts.”
— Ben Chan
Former chairman of the Kowloon-Canton Railway Corp, current Roundtable lawmaker Michael Tien, suggested that the fare adjustment mechanism should consider profits beyond the MTR’s property developments.
“Due to the current interest rates and the projected annual deficits in the government’s budget, the MTR’s property development profits are expected to remain low in the coming years.”
— Micheal Tien
He also emphasized on the need to factor in these circumstances when determining fare adjustments, as the MTR’s property development profits are unlikely to surpass the HK$5 billion mark in the future.
However, Tien also acknowledged that the fare hike strikes a balance between the interests of passengers and the sustainability of the rail giant. He recognized the MTR’s need to maintain service quality and ensure its long-term viability.
Edited by Floria and Brendan