TNAG-2982-FCO40-1474-Mass-Transit-Railway-(MTR)-in-Hong-Kong-1982 — Page 4

fares for both peak and

off-peak periods will be increased by $0.30 and the child/ student stored value fares by $0.15.

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The selling prices for stored value tickets will be reduced as follows:

Ticket Denominations

$ 25

$ 50

$100

$200

Existing Selling Prices

Proposed Selling Prices

$ 25

$ 25

$ 48

$ 47

$ 95

$ 92

$185

$180

The validity period for all the stored value tickets will be extended from 60 days to 90 days.

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The estimated combined effect of the above fare changes is to increase the average fare paid by all passengers from $1.86 at present to about $2.10 (excluding Government reimbursement for child/student tickets) i.e. by about 13%. This $2.10 average is slightly lower than the earlier targetted figure of $2.14 (see paragraph 9). Details of increases in the different types of fares are given in Annex B.

Timing

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The MIS fares will be increased on Monday 10th May simultaneously with the opening of the first stations on the TWE since this will be easier to explain to the public than having a slightly earlier date for the MIS revisions.

Public Reaction

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There have been speculative reports in the press that the Corporation will increase fares. The public reaction so far has generally been mild. Although some adverse public reaction particularly from interest groups is inevitable, better informed members of the public accept that public transport fares, like other necessities of life, are subject to the inevitable pressures of inflation and increasing operating costs.

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In view of the encouraging patronage figures recorded over the past six months and commuters' general satisfaction with the efficient service of the MTR, it is considered that any adverse reaction to the increased fares is unlikely to gain much public support.