China's Xi swears in new leader of casino hub Macao, telling the city to diversify economy

MACAO (AP) — Chinese President Xi Jinping urged the casino hub of Macao to diversify its economy as he swore in the former Portuguese colony's new government on Friday at an event marking the 25th anniversary of its handover to China.

New Chief Executive Sam Hou Fai — Macao’s first leader born in mainland China — vowed to address the territory's unbalanced and uncoordinated economic development.

Since its 1999 handover, the city of 687,000 has evolved from a monopoly-driven gambling enclave into the world’s largest gaming hub, drawing hordes of tourists from mainland China. The casino boom has improved living standards, but authorities are concerned that the semi-autonomous city's economy is unhealthily dependent on the industry.

Some young people say the tourism-dominated economy has limited their career options and the city’s diversified development. Critics say years of easy money from tourists have discouraged local businesses from innovating and improving, with many residents relying on personal connections to solve problems rather than civic participation.