Hong Kong MTR fares will increase by about 3 per cent in June, the city’s railway operator has announced.
The MTR Corporation (MTRC) – Hong Kong’s only train services provider – announced the hike on Tuesday under a rate adjustment mechanism that takes into account the conglomerate’s property development profits.
The government-controlled firm said the increase had considered public affordability as the fare adjustment was capped at 3.09 per cent, the equivalent to the change in median monthly household income in 2023.
According to its fare adjustment mechanism, the price hike could have been up to 5.05 per cent this year, which triggered the mechanism’s “affordability cap” arrangement. The remaining 1.96 per cent increase is expected to be deferred to next year.
“The ‘Affordability Cap’ arrangement has taken its effect this year in striking a balance between public affordability and the Corporation’s needs to maintain, upgrade and renew the railway system,” Managing Director of Hong Kong Transport Services Jeny Yeung said in a press release.
The company added that ongoing fare concessions will continue.
Ben Chan, a lawmaker for the city’s largest pro-Beijing Party the Democratic Alliance for the Betterment of Hong Kong (DAB), said he expected other public transport firms to follow the MTRC in raising ticket prices, as he expressed concern that the extra travel expenses would cause a burden for commuters.
He urged the MTRC to consider cancelling the deferred adjustment rate if fare rises were accumulated – or rolled over – for two years, and to promote fare concessions such as a “ride 10 get one free” arrangement.
HK$7.8 billion profit in 2023
Earlier this month, the firm said annual net profit had fallen more than 20 per cent to HK$7.8 billion last year owing to a drop in the value of its property investments. Total revenue, however, rose 19.2 per cent to HK$57 billion.
MTRC chief Jacob Kam said at the time that they “intend to capitalise on the momentum gained in 2023 to help propel MTR and Hong Kong towards a new era of growth,” according to RTHK. “[W]e will keep practising prudent cost management while seeking out smart technologies and innovations that can help make our railway operations and maintenance even more efficient.”
Rex Auyeung is to be reappointed at the chair of the MTRC from July 1 for another 1.5 years.
Fares last rose a year ago, with a hike of 2.3 per cent.
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