Hong Kong’s Peak Tram is an iconic transportation. It is the easiest way to get up to “The Peak” on Hong Kong Island. In 2008, Peak Tram celebrated its 120th year of service to Hong Kong.

In 1881, a Scotsman, Alexander Findlay-Smith found the tramway running between Garden Road and Victoria Gap at the Peak. The tram haulage system was powered by coal-fired steam boilers.
An electrically-powered haulage system replaced steam power system in 1926.
Since 1989, the system was controlled by computer and tramcars can carry 120 passengers.
Tramcars are fully computer-controlled with multiple safety features built-in to ensure passengers’ safety.
The tram station is located somewhere near Central, slightly up the peak. It is a walkable distance from Central MTR Station J2 exit or across the Hong Kong Park from Admiralty Station (look for Garden Road). You can locate the tram station from the locality map in MTR Station. The walk takes roughly 10 minutes.
The Tram fee (Return ticket) per person is HK$ 33 for adult and HK$ 15 for child under 12 or elderly above 65 years old. I would encourage to get the package (Peak Tram Sky Pass) which include the entry pass to Sky Terrace.
The ride up to the peak is definitely a memorable one. The inclination of the tram up the peak can be as much as 45 degrees. See from the picture the angle created by a vertical building and the window frame of the tramcar.

Sky Terrace is the top of Peak Tower which overlooks the Victoria Harbour at its best view.
You can find more useful information about Peak Tram & Peak Tower in their official website.
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Great infos..
True, there are lots of amazing sights, great shops and good food in Hong Kong. By the way, don’t forget to bring your camera or video cam so you won’t miss the fun and the great views, if you have plans of Traveling to Hong Kong.