The Executive Council on Tuesday gave the green light for three bus companies to increase their fares, although the hikes are smaller than what some of them had sought.

Citybus can increase fares by 7.5 percent, while New Lantao Bus and KMB can raise theirs by 6.5 percent and 4.3 percent respectively.

The new fares will take effect on January 5 next year.

In a statement, a government spokesman said around 80 percent of passengers will pay no more than 50 cents extra per trip.

"Although passenger volume and the revenues of franchised buses have significantly recovered after the pandemic, they have not fully returned to pre-pandemic levels due to changes in consumption and travel habits," the statement read.

The spokesman added the fare hikes would help bus companies stay afloat, and that factors such as operating costs and public affordability had been considered.

KMB and New Lantao Bus had asked for 6.5 percent increases, while Citybus wanted to put fares up by 9.5 percent for most routes.

In response to the fare hike approval, Citybus said this was the fourth approved fare adjustment application in the past 15 years, adding it would continue to improve efficiency and cut operating costs.

"We will continue to develop and expand our revenues next year, growing the network across Hong Kong organically and riding on the success and growth of our newly launched 'HK City Sightseeing' tourism brand," Citybus wrote in a statement.

KMB said it would do its best to give fare discounts to passengers, including interchange discounts between different routes.

The operator said it would continue to expand its non-farebox revenues, such as setting up convenience stores at bus stations and providing services to commercial vehicles.

Meanwhile, Transport Commissioner Angela Lee said the fare increases strike a balance between the impact on people's livelihoods and the financial sustainability of bus companies.

Speaking to reporters after the approval, Lee said the government has exercised its gatekeeping role.

"Regarding KMB and Citybus' franchises for urban and New Territories routes, we approved smaller fare increases than what the companies requested," she said.

"For routes that regular commuters use every day, we'll keep the increases lower. For routes mainly used by tourists on holidays and leisure trips, we'll apply higher increases. This way, we can minimise the impact on daily commuters."

Stephen Cheung, chairman of the Transport Advisory Committee (TAC), welcomed the fare hike approval.

"The TAC agrees that the government has endeavoured to strike a balance between minimising the impact on people's livelihood and maintaining reasonable financial capability of franchised bus operators for continuous investments," he said.

Cheung added the government should continue to help bus operators reduce costs and expand sources of revenue to ease the pressure of fare increases.
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Last updated: 2024-12-17 HKT 20:53