President Xi Jinping arrived in Macau on Wednesday to commemorate the 25th anniversary of the region’s return to Chinese sovereignty. During his three-day visit, Xi is expected to emphasize the need for further economic diversification, urging Macau to reduce its reliance on the casino industry, which dominates its economy.
Macau, the world’s largest gambling hub, is the only place in China where gambling is legal, contributing about 80% of the region’s tax revenue. Since its handover from Portugal to China on December 20, 1999, Macau has been governed under the “one country, two systems” framework, similar to Hong Kong. Xi’s visit is his third as president, following a 2019 trip during a period of unrest in Hong Kong.
Xi’s government has consistently encouraged Macau to diversify its economy, which remains heavily dependent on gambling revenues, particularly from high rollers. His administration’s anti-corruption efforts have already curbed the flow of funds in the VIP sector, leading to reduced gambling revenue.
During the visit, Xi is scheduled to attend a banquet and cultural performance at the Macau Dome, located near the Cotai Strip, and will participate in the anniversary ceremony and the inauguration of Macau’s new Chief Executive, Sam Hou Fai. Sam, who will take office on Friday, is the first leader of Macau born and raised in mainland China.
Macau’s new chief executive has pledged to diversify the economy, focusing on tourism and leisure as key sectors, and to improve the livelihoods of local residents. He has also emphasized the importance of enhancing Macau’s role as a bridge between China and Portuguese-speaking countries.
