Review of Hong Kong Bus Fares Adjustment Mechanism

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Client Transport and Housing Bureau (THB), Hong Kong
Dates 2014
Service(s)Policy & Economics, Regulation & Competition, Review & Evaluation
CEPA worked with GHK (Hong Kong) Ltd to review and propose revisions to the fares adjustment mechanism used by private bus operating companies in Hong Kong.

The review involved assessing the approach to fares setting adopted by a number of Bus Service operators internationally. By reference to these case studies CEPA and GHK considered whether there is a case for proposing changes to the existing fares adjustment mechanism in Hong Kong. The project also considered the impact of changes on stakeholders including  shareholders and an assessment of the appropriate cost of capital.