A lawmaker on Wednesday said that the Middle East conflict was posing a burden on the transport sector due to rising oil prices, but a tourism sector representative said the impact was limited on air passengers.

Speaking on an RTHK radio programme, transport sector lawmaker Lothair Lam said that overall shipping costs had risen by 20 to 30 percent.

This came as fuel costs per voyage surged by US$200,000 to US$300,000, he said, and the closure of the Strait of Hormuz connecting the Persian Gulf to the Gulf of Oman had caused shipments to reroute, which can add an additional 15 to 20 days to the overall journey time.

With oil production set to be raised by 206,000 barrels per day starting next month along with shipments rerouting away from the Strait of Hormuz to ensure a steady international oil supply, Lam believes the move would help tackle high fuel costs temporarily.

"I think these measures will definitely reduce the oil price. But I don’t think it will drop to the level seen before the Middle East conflict, as the situation there is still unstable," he said.

"Twenty percent of the world’s oil exports are from the Persian Gulf. As long as the situation in the Middle East remains unsettled, international oil prices will continue to fluctuate."

He believes the higher costs would eventually transfer to consumers if the conflict continues.

Steve Huen, executive director of EGL Tours, meanwhile, said the rise in fuel surcharges would not put a halt to people's travelling plans, even though Hong Kong Airlines will rise its fuel surcharges by up to 35 percent starting on Thursday due to soaring oil prices.

He told the same programme the rise in fuel surcharges would not affect those who have purchased a ticket before the new price level takes effect.

The increment only accounts for a small amount to tour fees, he said.

"I believe people will not cancel their plans to travel because they have to pay some HK$100 or HK$200 to HK$300 more," Huen added.

He also said that the cancellation of all Cathay Pacific passenger flights to Riyadh and Dubai until the end of this month had caused a major impact to his firm.

Additionally, many tours, particularly those bound for Europe and Africa that were scheduled to depart in the middle of this month and planned to transit through the Middle East, were called off as there are no alternative routes, he added.


Edited by Tony Sabine