Tram on Hong Kong Island Photo: Facebook, Hong Kong Tramways

Passengers on Hong Kong’s iconic tram system will have to pay more from July. Having gained council approval, Hong Kong Tramways Limited (HKT) will increase fares from July 2.

According to an announcement from the company, adult fares will rise from HK$2.3 to HK$2.6 (US$0.29 to US$0.37) .

Elderly passengers aged 65 or above will see fares rise from HK$1.1 to HK$1.2. Children aged between 3 and 11 will pay 10 HK cents more, taking their fare up to HK$1.30.

The new price for a monthly season ticket will rise HK$20 to HK$220, while the tourist ticket will remain at HK$34.

This represents the first fare increase in seven years.

Due to competition from other, mostly air-conditioned, modes of public transport, tram patronage and revenues have been falling, Wen Wei Po reported.

The tram company says it plans investment of approximately HK$110 million over the next few years to fund service improvement projects.

The tramway, which has served Hong Kong commuters for more than 110 years, operates on Hong Kong Island between Sha Kei Wan and Kennedy Town, with a branch line circulating through Happy Valley.