Chinese President Xi Jinping will visit Macau tomorrow for the 15th anniversary of its return to China as the city is struggling with declining gross domestic product and a significant drop in gambling revenue as a result of the President's intense anti-corruption drive.

Hit by China's corruption crackdown, casino revenues have been falling since June in Macau bracing for its first recorded loss for a calendar year.

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The Chinese territory,  which in recent years had the world's fastest growing economy with the backdrop of booming casinos, is struggling with  a deep plunge in gross domestic product and heavy losses in gambling revenue due to  Xi's corruption crackdown.

The anti-corruption campaign  has driven away high-rolling Chinese gamblers from playing in Macau casinos which have the reputation of raking in seven times more than the gambling profits of the Las Vegas strip in the US.

Macau's GDP fell in the third quarter this year  at 2.1% compared to a year earlier. It was the first time that the GDP dropped since the global financial crisis five years ago.

Revenues from gambling tumbled for six straight months after a five year winning streak. Financial analysts said revenue could fall an additional  30% this month.

Analysts said the Chinese central government may take a direct and active role in overseeing the casino industry in Macau as Beijing expressed dismay over the flagrant money laundering and corruption risks happening in the casino city.

Macau's quasi-central bank officials said it is collaborating with its counterparts in the mainland and China's Ministry of Public Security in preventing Macau from being used as  a haven for money launderers and capital flight.

Chinese officials want Macau to diversify its economy and not merely rely on the casino industry to benefit the city and China as a whole.

Li Fei, a top Chinese official for Hong Kong and Macau Affairs, said Macau should try to come up with fresh development plans that are less dependent on the casinos.

President Xi's visit comes at a time when China and Hong Kong are struggling to mend a deep strain in their relations brought about by the pro-democracy protests that lasted for two and a half months.

Macau, on the other hand, witnessed some political activities this year when crowds gathered to protest the local government's plans to give generous retirement benefits and perks to Macau officials.

Both Hong Kong and Macau operate under a one country, two systems arrangement. Chinese advisers to Macau said that China has failed to put Hong Kong in line and that what happened in Hong kong should not happen in Macau.

TagsMacau, Hong Kong, Revenues