Macau Welcomes New Leadership as Xi Jinping Highlights Economic Diversification

Chinese President Xi Jinping visited Macau from 18-20 December to mark the 25th anniversary of the city’s return to Chinese sovereignty and oversee a significant leadership transition. Outgoing Chief Executive Ho Iat Seng steps down, succeeded by Sam Hou Fai, a former judge committed to furthering Macau’s economic diversification.

A Tribute to Macau’s Success

President Xi praised Macau as a “jewel of the motherland,” commending its achievements under the “one country, two systems” framework. He stated, “Over the past 25 years, the ‘one country, two systems’ principle with Macau characteristics has achieved a world-recognised success,” acknowledging its resilience and adaptability.

Leadership Through Challenges

Xi expressed gratitude to Ho Iat Seng for his leadership during the COVID-19 pandemic, a period that severely impacted Macau’s economy, heavily reliant on the gaming industry. Ho’s administration implemented the “1+4” strategy to reduce this dependence, focusing on sectors such as healthcare, finance, technology, and special events.

This strategy has shown promise. Before the pandemic, gaming accounted for over half of Macau’s GDP and 80% of its tax revenue. In 2023, the gaming sector contributed 40% of GDP, while other industries expanded their share to 60%. Tourism is also recovering, with 2.8 million visitors in November, up 9.6% from the previous year.

Sam Hou Fai’s Vision for Macau

Incoming Chief Executive Sam Hou Fai has vowed to continue diversifying Macau’s economy while ensuring the sustainable development of its gaming industry. Initially critical of the sector’s rapid growth, Sam has shifted to a balanced approach, supporting regulated expansion.

Under his leadership, the city’s six major gaming concessionaires—including MGM Resorts, Wynn Resorts, and Las Vegas Sands—will invest MOP130 billion in non-gaming projects such as urban renewal and cultural initiatives. These investments are part of their 10-year licence renewal agreements.

Xi’s Visit: A Strategic Move

Xi’s visit signals Macau’s significance in China’s broader economic and regional strategies. Industry experts suggest the trip may also include an evaluation of Macau’s progress in diversifying its economy and meeting its non-gaming investment commitments.

As Macau transitions to new leadership, it stands as a model of how the “one country, two systems” framework can drive innovation and growth.