Volkswacht Bodensee - China's Xi to lead Macau handover anniversary celebrations

Macau is regarded by China as a shining example of its "One Country, Two Systems" model, and Xi praised the city as a "pearl in the nation's palm" at the start of his three-day visit.

The Chinese casino hub has grown from a Portuguese trading outpost to the world's casino capital by gaming revenue and a popular destination for Chinese tourists.

When Macau reverted to Chinese rule on December 20, 1999, Beijing promised that the city's "capitalist system and way of life shall remain unchanged for 50 years".

Arriving in the city on Wednesday, Xi lauded Macau's "world-recognised success" in implementing the "One Country, Two Systems" framework and said the city had a bright future.

"Macau is a pearl in the nation's palm, and I have always kept in my thoughts its development and the welfare of all its people," Xi said.

The Chinese president added that he would use his trip for "extensive and in-depth exchanges with our friends from all places, and discuss plans for Macau's development".

Friday's festivities will be centred around the inauguration of Sam Hou-fai, the former president of Macau's apex court, as the city's fourth post-handover leader, replacing Ho Iat-seng.

Security was tight around the city on Thursday, with roadblocks set up around an event venue and authorities increasing checks on inbound visitors.

- Casino hub -

Following the end of 442 years of Portuguese rule, Macau's fortunes have risen in lockstep with China's economic growth.

It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world's top casino hub, fuelled by two decades of Chinese visitor spending.

Macau, which has a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.

Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.

Under orders from Beijing to diversify the economy, Macau leaders have proposed fields such as financial services, technology and Chinese medicine as new economic drivers.

But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.

Xi on Thursday visited the Macau University of Science and Technology and was "briefed on the development of two state-level key laboratories" that involved Chinese medicine and planetary science, according to state news agency Xinhua.

He also visited the Guangdong-Macao In-Depth Cooperation Zone on Hengqin Island, speaking to residents and people there in charge of planning, construction, management and services, Xinhua reported.

Hengqin Island, a landmass adjacent to Macau and three times its size, was partly leased by Beijing to Macau to boost its land supply for non-gaming development.

S.Gantenbein--VB