In a visit to Macau, Chinese president Xi Jinping thanked outgoing chief executive Ho-Iat Seng for his leadership during Covid-19. Ho steps down tomorrow, to be succeeded by Sam Hou Fai.
On his first visit to Macau since 2019, Xi hailed the special administrative region (SAR) as “the jewel of the motherland”.
Xi arrived yesterday (18 October) for a three-day visit, marking the 25th anniversary of the city’s return to Chinese rule. He will also preside over a change in leadership. Ho Iat-Seng, chief executive since August 2019, will step down tomorrow (20 December). Xi will attend the inauguration of his successor, former judge Sam Hou Fai.
Leadership in unprecedented times
According to the Macau Daily Times, Xi thanked Ho for his leadership during the Covid-19 pandemic, which shut down the city for almost three years. The crisis reinforced Macau’s need to diversify the local economy beyond gaming.
“You have faced difficulties and been pragmatic”, Xi told Ho.
In particular, Ho has championed Macau’s “1+4” strategy for economic development. That plan emphasises tourism while also developing the healthcare, finance, technology and special events sectors. Designed to reduce the city’s reliance on a single industry, the plan is already working.
Pre-pandemic, gaming contributed more than half of Macau’s gross domestic product and generated 80% of local tax revenue. This year, Ho predicts, gross gaming revenue will contribute 40% of GDP, with other industries contributing 60%.
The city continues its post-pandemic rebound. According to new government figures, it welcomed 2.8 million visitors in November, up 9.6% year-on-year.
Sam willing to work with Big 6
The incoming chief executive also advocates a shift away from gaming for a more resilient economy. According to Macau Business, early in his candidacy Sam Hou Fai slammed the industry’s “barbaric expansion” and “negative impacts”.
To the relief of gaming operators, he later softened his tone, saying only that Macau’s primary industry must “develop healthily” for the city’s long-term viability. Sam promised his administration would “protect and supervise the healthy and orderly development of the six (gaming) concessionaires”.
Collectively, MGM Resorts, Wynn Resorts, the Las Vegas Sands Corporation, SJM, Galaxy Entertainment and Melco Resorts must invest a collective MOP130 billion (£12 billion/€14.6 billion/US$16.2 billion) in non-gaming amenities, such as urban renewal and cultural attractions.
Casino expert Ben Lee told international news channel Agence France Presse that Xi “will probably want to inspect the non-gaming investments that concessionaires promised two years ago”, when their licences were renewed for another 10 years.
Xi applauds “world-recognised success”
On his first day in Macau, Xi praised the Macau special administrative region (MSAR) as a shining example of “one country, two systems”, the government policy that grants special autonomy to both Macau and Hong Kong.
“Over the past 25 years, the ‘one country, two systems’ principle with Macau characteristics has achieved a world-recognised success,” Xi remarked. “It has demonstrated vitality and a unique appeal”.
