A taxi trade representative on Wednesday said cabbies are expected to earn thousands of dollars more every month when fares go up, but the sector is experiencing high operating costs and a change in passenger habits.

From July 14, there will be a HK$2 increase in flagfalls, meaning the starting fares will be HK$29 for urban taxis, HK$25.5 for New Territories cabs and HK$24 for Lantau taxis. Incremental charges will also rise.

Ng Kwan-shing of the Taxi Dealers & Owners Association said he believes the fare rises will mean cab drivers will earn around HK$100 extra for each shift, or an additional several thousand every month.

But he told an RTHK programme that both insurance and car maintenance cost more now, and that it's been challenging for nighttime taxi drivers.

"Because passengers have changed their habits, there's been less business. I hope that after the fare hike, the government could help with the financial situation, allowing more individual visitors [to Hong Kong], so that we could get more business," Ng said.

On the same programme, Transport Commissioner Angela Lee ruled out the taxi trade's suggestion of a regular mechanism to review fare rates.

"The taxi trade understands its own operating situation best... They may not submit [an application] every year, and it depends on changes to its operations and whether there is a need to ask for fare adjustments," Lee said.

"Every time we receive [an application], we will handle it cautiously and act as the gatekeeper. I think this approach has always been taken and is effective. So we don't have any plans to change it for the time being."

Lee added that how much cabbies earn is not the sole factor in deciding on fare adjustments.