During his visit to Macau, Chinese President Xi Jinping expressed gratitude to outgoing Chief Executive Ho Iat Seng for his leadership throughout the COVID-19 pandemic. Ho, who will conclude his term tomorrow, will be succeeded by Sam Hou Fai.
On his first visit to Macau since 2019, President Xi Jinping praised the special administrative region (SAR) as "the jewel of the motherland."
Xi arrived on 18 December for a three-day visit to commemorate the 25th anniversary of Macau's return to Chinese rule. His visit coincides with a leadership transition, as Chief Executive Ho Iat Seng, who has served since August 2019, will step down on 20 December. Xi is set to attend the inauguration of Ho’s successor, former judge Sam Hou Fai.
Leadership in unprecedented times
According to the Macau Daily Times, President Xi Jinping commended outgoing Chief Executive Ho Iat Seng for his leadership during the Covid-19 pandemic, which brought Macau to a standstill for nearly three years. The crisis highlighted the urgent need for Macau to diversify its economy beyond gaming.
"You have faced challenges with pragmatism," Xi told Ho during his visit.
Under Ho’s leadership, Macau pursued the “1+4” economic strategy, focusing on tourism while also fostering growth in healthcare, finance, technology, and special events. This plan aims to reduce the city’s dependence on gaming, and early results show progress.
Before the pandemic, gaming accounted for over half of Macau's GDP and generated 80% of local tax revenue. This year, Ho projects that gross gaming revenue will contribute 40% of GDP, with the remaining 60% coming from other industries.
Macau’s post-pandemic recovery is gaining momentum. Government data shows the city welcomed 2.8 million visitors in November, a 9.6% increase compared to the same period last year.
Sam willing to work with Big 6
The incoming Chief Executive, Sam Hou Fai, has also emphasized the need to reduce Macau’s reliance on gaming to build a more resilient economy. Early in his candidacy, Sam criticized the industry’s “barbaric expansion” and its “negative impacts,” according to Macau Business.
However, to the relief of gaming operators, he later adopted a more measured stance, stating that Macau's primary industry must “develop healthily” for the city’s long-term sustainability. Sam pledged that his administration would “protect and supervise the healthy and orderly development of the six gaming concessionaires.”
The six major operators—MGM Resorts, Wynn Resorts, Las Vegas Sands Corporation, SJM Holdings, Galaxy Entertainment, and Melco Resorts—are collectively required to invest MOP130 billion (£12 billion/€14.6 billion/US$16.2 billion) in non-gaming initiatives, such as urban renewal projects and cultural attractions.
Casino industry expert Ben Lee told Agence France Presse that President Xi Jinping is likely to evaluate the progress of these non-gaming investments, which were pledged two years ago when the operators renewed their licenses for another 10 years.
Xi applauds “world-recognised success”
On his first day in Macau, President Xi Jinping lauded the Macau Special Administrative Region (MSAR) as a model of success under the "one country, two systems" framework, the policy that grants special autonomy to both Macau and Hong Kong.
“In the past 25 years, Macau has achieved remarkable success with its implementation of the ‘one country, two systems’ principle,” Xi stated. “This approach has showcased its vitality and distinctive appeal to the world.”
