On his first visit to Macau since 2019, Xi Jinping praised the special administrative region (SAR) as a “precious gem” of China.
Xi arrived on October 18 for a three-day trip commemorating the 25th anniversary of Macau’s return to Chinese sovereignty. During his visit, he will oversee a leadership transition. Ho Iat-Seng, who has served as chief executive since August 2019, is set to step down on December 20. Xi will attend the swearing-in ceremony of Sam Hou Fai, his successor and a former judge.
### Leadership During Challenging Times
According to the Macau Daily Times, Xi expressed gratitude to Ho for his leadership throughout the Covid-19 pandemic, which effectively put the city on lockdown for nearly three years. This crisis highlighted Macau’s pressing need to diversify its economy beyond just gaming.
“You have tackled challenges with pragmatism,” Xi commended Ho.
Ho has notably pushed for Macau’s “1+4” strategy for economic advancement. This initiative prioritizes tourism alongside the development of healthcare, finance, technology, and special events sectors, aiming to lessen the city’s dependence on a singular industry. The strategy has already shown promise.
Before the pandemic, gaming constituted more than half of Macau’s GDP and accounted for 80% of its local tax revenue. This year, Ho anticipates that gaming revenue will comprise 40% of GDP, while other industries will make up 60%.
The city is steadily recovering from the pandemic. Recent government data indicates that Macau welcomed 2.8 million visitors in November, reflecting a 9.6% increase compared to the previous year.
### Sam’s Vision for Economic Resilience
The incoming chief executive, Sam Hou Fai, also supports diversifying Macau’s economy away from its reliance on gaming. As reported by Macau Business, Sam initially criticized the gaming industry’s “excessive growth” and “detrimental effects.”
However, he later moderated his views, emphasizing that the gaming sector needs to “develop healthily” for Macau’s sustainable future. Sam pledged that his administration would “ensure the healthy and orderly growth of the six gaming concessionaires.”
The collection of MGM Resorts, Wynn Resorts, Las Vegas Sands Corporation, SJM, Galaxy Entertainment, and Melco Resorts is required to invest a total of MOP130 billion (approximately £12 billion/€14.6 billion/US$16.2 billion) in non-gaming initiatives, such as urban renewal and cultural projects.
Casino analyst Ben Lee informed Agence France Presse that Xi “will likely want to assess the non-gaming commitments the concessionaires made two years ago” when their licenses were renewed for another decade.
### Xi Commends Macau’s Achievements
On his first day in Macau, Xi lauded the Macau special administrative region (MSAR) as a distinguished model of the “one country, two systems” policy, which grants both Macau and Hong Kong special autonomy.
“Over the past 25 years, the ‘one country, two systems’ policy, tailored for Macau, has attained globally acknowledged success,” Xi stated. “It has shown remarkable vitality and a distinct allure.”