China’s President Xi Jinping arrives 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.

Chinese flags and red congratulatory banners fluttered along roads and over buildings around the city in preparation for the 25th-anniversary celebrations.

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.

He was the only candidate given permission by a panel of 400 pro-China loyalists to run in Macau’s election. In December, Sam unveiled his team of officials to govern Macau for the next five years.

Among them is Tai Kin Ip, a seasoned economy minister whose mandate is to diversify the economy and reduce reliance on gambling revenue brought in by operators Wynn Macau (1128.HK), Sands China (1928.HK), SJM Holdings (0880.HK), Galaxy Entertainment (0027.HK),, Melco (0200.HK), and MGM China (2282.HK).

Sam has vowed to improve residents’ livelihoods and develop non-gaming industries once he takes charge on Friday.

He said Macau will also develop its role as a conduit between Chinese and Portuguese-speaking countries and its collaboration with other southern Chinese cities in the Greater Bay Area.

At Beijing’s directive, last year Macau’s government rolled out its first economic blueprint centred on a strategy envisaging tourism and leisure as the main pillars.