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Explained China Hong Kong SAR Rules in force

Hong Kong SAR Outlines Sustainable Policy Framework for Non-Franchised Public Bus Trade

The Acting Secretary for Transport and Logistics outlined measures on labor importation, anti-illegal passenger carriage enforcement, and commercial parking supply for non-franchised public buses in a Legislative Council reply.

What Changed

  • As of September 2026, 738 imported drivers commenced service under the Labour Importation Scheme, with 535 quota renewals approved.
  • Police arrested nine drivers and impounded nine private cars during targeted cross-boundary enforcement operations from October 27 to November 9, 2026.
  • The Government launched a new Parking Supply and Demand Study with policy recommendations expected in 2027 to ensure every commercial vehicle has a nighttime parking space.

### Background

Non-franchised public buses (NFBs) serve a vital supplementary role within Hong Kong SAR's public transport framework. Unlike franchised buses or green minibuses, NFBs primarily deliver customized transport services for specific passenger groups during peak hours, including tour, hotel, student, and cross-boundary travel needs. Official figures released by the Hong Kong SAR Government indicate that as of August 2026, there were 7,559 licensed NFBs operating in the territory.

On November 11, 2026, the Acting Secretary for Transport and Logistics, Mr Liu Chun-san, provided a comprehensive written reply to questions raised by Legislative Council (LegCo) Member the Hon Lothair Lam regarding the trade's long-term sustainability. The official response, prepared in consultation with the Security Bureau, detailed government actions in three core policy areas: mitigating driver shortages, enforcing statutory provisions against illegal carriage of passengers for reward, and expanding commercial vehicle parking infrastructure.

### Labour Shortages and the Labour Importation Scheme

The non-franchised bus and coach sector in Hong Kong SAR has experienced driver shortages alongside an aging workforce. To alleviate these operational constraints, the Hong Kong SAR Government established the Labour Importation Scheme for the Transport Sector – Public Light Bus (PLB)/Coach Trade.

Under the initial framework of the Scheme, a total of 800 quotas for coach drivers were approved across 2023 and 2024. Government statistics show that as of September 2026:

- A total of 738 imported drivers completed local driving training and examinations in Hong Kong SAR, actively entering service as local or cross-boundary coach drivers.

- As quotas approved under the initial phase began expiring towards the end of 2025, the Transport Department (TD) initiated an orderly renewal process.

- By September 2026, renewal applications for 535 quotas had been formally approved, with processing ongoing for remaining submissions.

To complement imported labour, the Government is maintaining local recruitment initiatives. These include coordinating industry participation in employment programmes, broadening recruitment channels, relaxing requirements for commercial vehicle driving licence applications, and including recognised commercial driver training courses under the Continuing Education Fund subsidy structure.

### Enforcement Against Illegal Passenger Carriage Services

The rise in suspected cross-boundary private cars conducting illegal hire or carriage of passengers for reward presents safety concerns and directly impacts lawful cross-boundary direct bus operators. Under the Road Traffic Ordinance (Cap. 374), drivers convicted of using a motor vehicle for illegal carriage of passengers for hire or reward face strict statutory penalties:

- First-conviction penalties include a fine of up to $10,000 and imprisonment for up to six months.

- The vehicle licence for the involved motor vehicle is temporarily suspended, and the vehicle itself is impounded for six months.

- Effective August 3, 2026, the statutory period for driving licence disqualification was extended to a minimum of 12 months, with potential disqualification extending up to three years.

In addition to statutory court penalties, the Transport Department revokes the closed road permit of any cross-boundary vehicle found engaging in illegal carriage, citing breaches of permit conditions. Over a two-week period from October 27 to November 9, 2026, joint police operations resulted in the arrest of nine drivers suspected of illegal cross-boundary passenger transport and the impounding of nine locally-registered cross-boundary private cars. Vehicle details are also referred to relevant Mainland authorities for cross-boundary follow-up.

### Commercial Vehicle Parking Infrastructure Measures

As of August 2026, Hong Kong SAR maintained 4,766 dedicated parking spaces for non-franchised buses (excluding MTR Corporation Limited internal parking facilities). This yields a licensed vehicle-to-parking space ratio of approximately 1 : 0.65.

To address this shortfall and achieve the long-term strategic policy target of "every commercial vehicle having a parking space at night," the Government is implementing several coordinated parking initiatives:

1. Short-Term Tenancy Car Parks: Liaison between the TD and Lands Department to stipulate minimum commercial vehicle parking requirements in suitable short-term tenancies.

2. Roadside and Nighttime Parking: Expanding roadside parking, pick-up/drop-off facilities, and designating nighttime roadside spaces.

3. Public Project Integration: Incorporating commercial vehicle parking into "Government, Institution or Community" and public open space projects.

4. School Parking Initiatives: Promoting the "Opening Up School Parking Spaces to Student Service Vehicles Scheme" for non-school hours.

5. Housing Development Guidelines: Adjusting the Hong Kong Planning Standards and Guidelines to mandate commercial parking in subsidised housing developments and introducing "shared" parking spaces for NFBs and medium/heavy goods vehicles.

A new round of the Parking Supply and Demand Study is currently underway, aiming to release formalized recommendations in 2027.

### Frequently Asked Questions

Q1: What is the official role of non-franchised buses within Hong Kong SAR's public transport system?

A1: Non-franchised public buses play a supplementary role, providing tailored transport services primarily during peak periods for specific groups, including tour, hotel, student, and cross-boundary services.

Q2: What penalties do drivers face for using vehicles for illegal passenger carriage for reward?

A2: On first conviction under the Road Traffic Ordinance (Cap. 374), drivers face fines up to $10,000, up to six months imprisonment, vehicle licence suspension and impounding for six months, and driving licence disqualification of at least 12 months (up to three years). Closed road permits for cross-boundary vehicles are also revoked.

Q3: How many imported coach drivers have entered service under the Labour Importation Scheme?

A3: As of September 2026, 738 imported drivers had completed the required local driving training and tests in Hong Kong SAR and commenced service.

Q4: What is the current ratio of licensed non-franchised buses to dedicated parking spaces?

A4: As of August 2026, with 7,559 licensed NFBs and 4,766 dedicated parking spaces (excluding MTR facilities), the vehicle-to-parking space ratio stands at approximately 1 : 0.65.

Who May Be Affected

Non-franchised bus operators, cross-boundary coach service providers, private car owners engaged in illegal hire services, commercial vehicle drivers, and transport sector stakeholders in Hong Kong SAR.

Cross-Border Context

Refers to cross-boundary direct bus services, closed road permits for cross-boundary private cars, and referral of illegal passenger transport data to Mainland authorities for follow-up.

What to check next

  • Publication of the Parking Supply and Demand Study recommendations expected in 2027.

This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.

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