Sunday, March 31, 2024
MTR Corporation revealed on 26 March 2024, that this year’s (2024/25) fare adjustment has been set at an increase of 3.09%. This adjustment is in line with the “Affordability Cap” guidelines, ensuring the fare change remains within a range that is considerate of the public’s financial well-being.
In addition to adhering to the Fare Adjustment Mechanism (FAM), the Corporation is committed to extending a variety of fare concessions aimed at benefiting a diverse group of passengers, including the elderly, children, students with eligibility, and individuals with disabilities. These concessions, valued at about $2.9 billion in the previous year, encompass ongoing discounts and offers like the “City Saver”, a $0.5 discount for Green Minibus transfers, and the continuation of the “Monthly Pass”, “Tuen Mun – Nam Cheong Day Pass”, and “Early Bird Discount” for another year.
“The ’Affordability Cap‘ arrangement has taken its effect this year in striking a balance between public affordability and the Corporation’s needs to maintain, upgrade and renew the railway system. This year marks MTR’s key milestone of 45 years since the commencement of railway services. With the purpose to ’Keep Cities Moving‘, we are committed to providing reliable, efficient and high-quality railway services as always,” said Ms Jeny Yeung, Managing Director – Hong Kong Transport Services of MTR Corporation.
The fare adjustment figure of 3.09% is informed by the latest statistics from the Census and Statistics Department (C&SD), which include a 5.2% increase in the Nominal Wage Index for Transportation (NWI(T)) and a 2.4% rise in the Composite Consumer Price Index (CCPI) for December 2023. These figures contribute to a comprehensive fare adjustment rate of 3.2% when including the most recent Productivity Factor calculations detailed in the annex’s first step.
Simultaneously, since 2013, the Fare Adjustment Mechanism (FAM) has incorporated the “Affordability Cap” provision. This ensures that the actual fare increase, as determined by the FAM, does not exceed the annual change in the Median Monthly Household Income (MMHI) for the last quarter of the relevant year, safeguarding the cost of travel for the public. Recent data from the Census and Statistics Department (C&SD) showed a 3.09% increase in MMHI, although the FAM formula indicated a fare increase of 3.2% this year. As a result, the “Affordability Cap” will limit the MTR fare increase to 3.09% this year, as detailed in step 2 of the Annex. The difference of 0.11% will be gradually recovered over the next two years: 0.06% in 2025/26 and 0.05% in 2026/27. Additionally, a previous adjustment rate of 1.85% from 2023/24 will also be deferred to 2025/26 for recuperation. Historically, since the Rail Merger, the MTR’s yearly fare adjustments have remained below Hong Kong’s average annual inflation rate for the corresponding periods.
The Corporation is now finalizing the specifics of individual fare changes. The formal declaration of the fare structure for 2024/25, including its commencement date, will follow the completion of necessary administrative tasks. This includes obtaining certifications from two independent experts who will confirm the adherence to the FAM criteria, before presenting this documentation to the Government.
Wednesday, May 1, 2024
Wednesday, May 1, 2024
