China's President Xi Jinping arrived in Macau on Wednesday to mark a quarter century of Beijing's rule over the former Portuguese enclave, and is likely during his three-day visit to urge further diversification from its casino industry.

Xi's trip to the world's biggest gambling hub is his third as president, during which he will attend the inauguration of the territory's new chief executive, elected in October. Xi last visited in 2019 when anti-government protests were rocking the neighbouring financial hub of Hong Kong.

A special administrative region of China, Macau is the only place in the country where gambling is legal, and its economy is heavily dependent on the casino industry, which contributes about 80% of regional tax revenue.

Located on China's southern coast, Macau returned to Chinese rule on Dec. 20, 1999, governed under the same "one country, two systems" formula as Hong Kong.

Beijing has consistently praised Macau for its loyalty and stability, with more than half of its 700,000 population immigrating from China in recent decades.

The city was on high security ahead of Xi's arrival on Wednesday, with several roads closed and Macau's light rapid transit operator announcing the temporary closure of a key section.

Xi, who was greeted at Macau's airport by dozens of cheering school children waving yellow and red flowers and lion dancers, said Macau was the "jewel of the motherland."

"I have always been concerned about the development of this place and the well-being of all its residents," he told the crowd, which included senior government officials and Macau's current leader Ho Iat Seng.

"In the next few days, I will take a walk, have a look, and have extensive and in-depth exchanges with friends from all walks of life to discuss Macau's development plans."

Since he took office in 2013, Xi has called for the Macanese economy's "appropriate diversification and sustainable development," including casinos and the flow of funds across borders within a sweeping anti-corruption drive. The move has throttled gambling revenues from the high roller VIP sector.

On Thursday, Xi is scheduled to attend a banquet dinner and cultural performance at the Macau Dome, located alongside Macau's Las Vegas-style Cotai strip, according to the city's government.

On Friday, he will attend the anniversary ceremony and the inauguration of Chief Executive Sam Hou Fai, 62, who was born in China's southern Guangdong province and speaks fluent Portuguese.
Sam, head of Macau's highest court since 1999, will become the first city leader to be born and raised in mainland China.