Actors perform at an evening gala marking the 15th anniversary of Macao's return to the motherland in Macao, South China on Friday. Photo: Xinhua

Chinese President Xi Jinping arrived in the Macao Special Administrative Region (SAR) Friday noon for celebrations marking the 15th anniversary of Macao's return to the motherland.

Macao' progress has fully demonstrated the strong vitality of the great concept of "one country, two systems," Xi said on Friday in Macao.

"Today, we see a vibrant, stable and harmonious Macao by the South China Sea with a brand new look," said the president at a welcome dinner.

Xi said that Macao has made great achievements in economic and social development in last 15 years and the achievements are attributable to the full and correct implementation of the principle of "one country, two systems" and the Basic Law.

Xi's two-day trip marks the fifth visit to Macao by a Chinese top leader since the country resumed sovereignty over Macao on December 20, 1999. This is also Xi's first visit to Macao since he took office.

Xi's presence showed that the central government has recognized Macao's development these years in terms of economic performance and political stability, said Zhu Songling, a professor of Taiwan, Macao and Hong Kong studies with the Beijing Union University, told the Global Times.

Macao is also a successful model of the policy, Zhu said.

When meeting with Macao Chief Executive Chui Sai-on, Xi announced the decision to demarcate the sea zones of the Macao.

The spokesperson of Hong Kong and Macao affairs office of the State Council said the decision will help promote diversifying Macao's economy and boost cooperation between Macao and neighboring Guangdong Province.

Xi also announced that the central government will gift a pair of giant pandas to Macao, saying that he hopes the pair will grow up healthy and bring happiness to Macao residents.

Meanwhile, Xi pointed out that Macao still faces difficulties and challenges that must be properly managed.

"Macao has its own share of problems ... The important issue for Macao is how it can make greater progress on the basis of its achievements in the last 15 years and maintain long-term prosperity and stability,'" Xi said.

Si Kalon, a Macao lawmaker, told the Global Times that problems like increasing property prices and commodity prices are emerging and it needs to diversify its economic growth currently heavily dependent on gambling.

Macao's casino revenues have decreased for the last six months, following five years of continuous growth, a shift attributed to a crackdown on corrupt officials traveling to the region to gamble. Gambling is banned in the rest of China.

The fourth-term government will face big challenges to help society to reform, Si said.

Xi is scheduled to attend the inauguration of the fourth-term government of the Macao on Saturday.

When meeting Hong Kong chief executive Leung Chun-ying, who is also in Macao for the celebrations, Xi said that the central government has full trust in Leung and the Hong Kong government.

Four days ago, Hong Kong ended its two and half month-long Occupy Central movement. "The central government will, as always, support you and the SAR government in your work," Xi said at a meeting with Leung.

Xi said that Hong Kong and its police force have fulfilled their duty with courage.

People compare the two regions, but there won't be any Occupy movement in Macao, Mo Shijian, dean of its Faculty of Law with the University of Macao, told the Global Times.

It is not only because Macao's situation in economy, politics and law has improved a lot after the return and there are many people who love both Macao and the country, but also because there are much fewer radical political groups than in Hong Kong, he said.

Macao people respect the "one country, two systems" policy and understand that the "two systems" could not override "one country," Mo claimed.

Xinhua contributed to this story