Monthly cap on Hong Kong’s HK$2 fare scheme unlikely to save much: economist

The government may cap the number of times the HK$2 (25 US cents) public transport concessionary fare scheme can be used by elderly Hongkongers at 240 times per month, according to sources, although one expert has warned that introducing limits would not save much money.

Users of the scheme could also be required to cover 20 per cent of the usual fare for trips costing more than HK$10, which was expected to save the government HK$100 million to HK$300 million a year, insiders said on Friday.

But an economist said the proposed changes might lead eligible passengers to change their travel patterns, with the government spending even more in the worst case.

The HK$2 transport fare, a benefit to which 2.4 million people aged 60 or above and those with disabilities are entitled, has come under the spotlight recently as the government is looking to tighten its belt to tackle a deficit expected to hit nearly HK$100 billion in the current financial year.

Over the past five financial years, the government paid more than HK$10.7 billion in reimbursements to public transport operators, with the amount increasing by more than 200 per cent from HK$1.2 billion in 2019-20 to HK$3.9 billion in 2023-24. The government estimated the amount would rise to HK$6 billion in 2024-25.

The insiders said recouping the 20 per cent was aimed at addressing situations where passengers took long-haul routes for short journeys, which cost the government more as it needed to pay the difference to operators.