There has been some controversy recently about the HK$2 flat fare for the elderly on public transport. This was introduced in 2012 for people aged 65 or older, and then extended in 2022 to those aged 60 or over.
This report says that the scheme costs around HK$4 billion per year (roughly US$500 million). That's about 0.5% of total government expenditure.
Before this scheme was introduced, there were half-price fares for those over 65, offered by most of the various transport operators (all of which are for-profit companies). All that was required was an “Elder Octopus” card. There is no age (or ID) check when they are issued, but there is a penalty of HK$500 if anyone is caught using one when under age.
When the HK$2 fare was introduced, this was available with the “Elder Octopus” card (which meant it was available to non-residents). Then, with the extension to 60 came the personalized Joy You card, which is only for Hong Kong residents.
- The “Elder Octopus” still exists, but only gives the half-price fares without the HK$2 maximum.
Every time the JoyYou card is used the government pays the transport operators the difference between their fare for the journey and HK$2.
At this point it needs to be explained that fares on most buses and minibuses are based on the assumption that the passenger is travelling to the final destination. So it is entirely possible that the fares for travelling the exact same journey will vary by the bus route you choose. If one of the buses is long-distance or Cross-Harbour, the difference can be substantial.
- For example, if you took a bus from Wan Chai to Causeway Bay the fare could be HK$24 if the final destination is Tuen Mun, HK$10 if it is going to Chai Wan, or HK$5 if it terminates at Causeway Bay
If you have the JoyYou card it doesn’t matter which bus you choose – the government will pay the balance of the fare, whether that is HK$22 or HK$3 (if you are over 65, then the concession fare applies, so the government has less to pay).
Technically, it should be possible for passengers to swipe out when leaving the bus, as suggested here, though you have to wonder how many people would actually do it. [Update: it seems that some KMB routes have an Octopus reader on bus stops that give a refund, so that you pay less for travelling only part of the distance]
Minibuses do have some sectional fares, available on request, but you probably wouldn't bother if you had a JoyYou card.
MTR fares are all point-to-point, so it isn't an issue.
There have been reports of fraudulent usage – one scheme involved minibuses, with a number of Elder Octopus cards being used as per HKFP:
The tip-off came from the Transport Department, who noticed there was an unusual number of senior citizens taking the minibus late at night….The government only charges such individuals HK$2 per trip and the rest of the fare is returned to minibus operators by the government. Since the fare for the Sheung Shui-Kwun Tong route is HK$22.50 the government provided a subsidy of HK$20.50 the minibus driver would have then received his contractual share of the profits.
This report says that there were an average of 112 cases of abuse uncovered annually between 2017-2019 out of almost half a billion $2 trips taken every year: that’s 0.00001% of trips, costing the government an estimated HK$13,000 per year. This SCMP report (paywall) says that it rose to 314 cases in 2022, and this rather confusing story says that:
The MTR Corporation imposed surcharges on approximately 9,680 individuals deemed ineligible for the fare scheme…and two cases were successfully prosecuted. One individual received a fine of approximately HK$14,000 and was required to repay HK$2,000 in underpaid fares. Another individual was convicted of two counts of false accounting, receiving a sentence of 120 hours of community service, along with a fine of around HK$5,800 and a repayment of HK$620 in underpaid fares.
Hard to believe that this is a major problem, especially since the introduction of the JoyYou card.
On the other hand, some people are complaining that the scheme isn’t generous enough:
Younger seniors fight for lower fares | The Standard
Currently, those aged 65 and above pay HK$12.60 for a trip from Sheung Shui to Lo Wu and Lok Ma Chau stations, but those below 65 must pay the full price of HK$25.10. JoyYou holders aged 60 to 64 traveling from Admiralty to Lo Wu pay HK$49.60 – the same as any adult passenger. But those 65 and over pay a concessionary fare of HK$24.80.
Here’s a tip: take the MTR from Admiralty to Sheung Shui, exit the station, wait about a minute and then swipe back in and you’d pay HK$14.60 (over 65) or HK$27.10 (60-64) in total. It's very easy because the exit is at platform level. [Fares have increased since that story was published, but the principle is the same]
Those below 65 are also excluded from the concessionary fare for trips to the Racecourse station in Sha Tin.
A 64-year-old JoyYou Card holder and punter, Cheung, said it is unfair that he must pay the full fare of HK$ 16.60 for his weekly commute to the racecourse while his elders enjoy a HK$2 fare.
"I don't understand why they're setting the eligibility for certain concessions at 65 when they give the card to people 60 years old and above," he said.
Not sure it’s really commuting, but indeed it seems that the HK$2 fare does apply for the over 65s only, which is quite confusing. Another tip – break your journey at Sha Tin (though here you have to go up to the concourse level and back down again), or go to Fo Tan and walk from there!
JoyYou fares don't apply on Airport Buses and there are no concessions for the elderly on the Airport Express – except for special offers for a limited time.
Will anything change? It wouldn't be unreasonable to increase the flat fare in line with inflation. Or change it to not apply during the morning rush hour. They could increase the minimum age, but that would seem strange so soon after lowering it to 60.
How about negotiating with the transport companies? They are getting extra revenue with minimal extra cost, so they could afford to pay part of the subsidy, but I can't see that happening.
By way of comparison, London has free travel for the over 60s, except during the morning rush hour. To apply you need to be resident in any of the 32 London Boroughs. This is largely moving money from one part of the government to another, because Transport for London (TfL) is a public body and the train companies are effectively under government control and will soon be nationalised.
In most of the rest of England you only get free bus travel, and only from the state retirement age (currently 66, rising soon to 67), though that does apply nationwide.
Of course the fundamental issue here is that it doesn't really make sense to offer these concessions when most people can work well beyond 60, and most could afford to pay.
The previous British government did instruct TfL to start raising the minimum age up to state retirement age, but they seem to have found the money to avoid doing that. I suspect that nothing will change with the JoyYou card either.
Ordinary Gweilo 