Xi Jinping Praises Macau’s Leadership Amid Transition
Chinese President Xi Jinping arrived in Macau on 18 December for a three-day visit, commemorating the 25th anniversary of the city’s return to Chinese sovereignty. The visit also marks a leadership transition, with outgoing Chief Executive Ho Iat Seng stepping down on 20 December and being succeeded by former judge Sam Hou Fai.
During his visit, Xi hailed Macau as “the jewel of the motherland” and highlighted the city as a successful model under the “one country, two systems” framework. “Over the past 25 years, the ‘one country, two systems’ principle with Macau characteristics has achieved a world-recognised success,” Xi stated, praising its vitality and appeal.
Leadership During the Pandemic
Xi expressed gratitude to Ho Iat Seng for his leadership during the challenging Covid-19 pandemic, which brought the city to a near standstill. The pandemic highlighted Macau’s need to reduce its reliance on gaming and diversify its economy.
Under Ho’s administration, the city adopted the “1+4” economic diversification strategy. While tourism remains central, the plan emphasises growth in healthcare, finance, technology, and special events. These efforts are showing results; pre-pandemic, gaming accounted for over half of Macau’s GDP and 80% of tax revenue. This year, gaming is expected to contribute 40% of GDP, with other industries taking up 60%.
Macau is also experiencing a steady recovery in tourism. Recent government data indicates that 2.8 million visitors arrived in November, a 9.6% increase from the same period last year.
Incoming Chief Executive Sam Hou Fai
Sam Hou Fai, who will take office on 20 December, has also expressed a commitment to diversifying Macau’s economy. Early in his candidacy, he criticised the “barbaric expansion” and negative impacts of the gaming industry. However, he later moderated his stance, emphasising the importance of healthy and sustainable development for the sector.
Sam has pledged to oversee the orderly development of Macau’s six major gaming concessionaires: MGM Resorts, Wynn Resorts, Las Vegas Sands, SJM, Galaxy Entertainment, and Melco Resorts. Collectively, these companies are required to invest MOP130 billion in non-gaming projects, such as urban renewal and cultural attractions, as part of their 10-year licence renewal agreements.
Casino industry expert Ben Lee speculated that Xi’s visit might include an assessment of these non-gaming investments.
Xi’s visit underscores Macau’s importance to China’s broader goals for economic stability and regional integration. As the city transitions to new leadership, it remains a critical example of how the “one country, two systems” framework can foster growth and innovation.
