The Chief Executive in Council today approved the Star Ferry Company's fare increase application for its Central-Tsim Sha Tsui and Wan Chai-Tsim Sha Tsui services.

Star Ferry submitted an application for the fare increases in April 2019, seeking to raise the fares of the two ferry services by $0.3 to $0.5 per trip.

When considering Star Ferry's application the Government took into account all factors including the financial position of the ferry operator; forecasts of changes in operating costs, revenue and return; the ferry operator's past performance in the provision of ferry services; public acceptability of the proposed fares, and measures implemented by the ferry operator to save costs and generate additional revenue.

The Government also said Star Ferry has suffered losses since 2018.

Noting that Star Ferry is a transport mode much preferred by visitors, in the fallout of public order events and the COVID-19 pandemic, its patronage and thus farebox revenue dropped significantly in 2019 and 2020 and it would unlikely return to the previous level in the short-to-medium run.

It also pointed out that since the last fare increase in July 2017, there was a continuous rise in Star Ferry's operating costs and in light of the uncertain economic situation, its non-farebox revenue, including rental and advertising income, could not be guaranteed. There is a need for Star Ferry to adjust its fare, the Government added.

It also said Star Ferry’s service performance has all long been satisfactory. It has been actively taking forward measures to enhance service, reduce costs and generate additional revenue, such as replacing pier facilities and rationalising fleet deployment.

Notwithstanding its dire financial situation, Star Ferry continues to press ahead with its commitment to promote green ferry services by converting its franchised ferries to more environmental propulsion systems.

The maximum fares that could be charged by Star Ferry are set out in the relevant law. The amendment will be tabled at the Legislative Council on December 16 for negative vetting.

Upon completion of the procedures, the new fares will take effect from February 9.