The Executive Council on Tuesday approved an application by Hong Kong Tramways for a fare increase – the first since July 2018.

Adult fares will climb from HK$2.60 to HK$3.00.

Fares for those under 12 will rise from HK$1.30 to HK$1.50, while elderly fares will increase from HK$1.20 to HK$1.30.

A government spokesman said the fare increase is necessary to maintain the operator's financial sustainability, noting that the company’s profit margin was 18 percent in 2018 but it has been losing money since 2021.

“Hong Kong Tramways’ patronage has been decreasing and the fare revenue has also correspondingly dropped due to the competition from other public transport modes, as well as the prolonged pandemic and the necessary social distancing measures,” the spokesman said.

The new fares are expected to come into force on July 11.