As the global economic crisis worsens, Macau investors and policy-makers are expending strenuous efforts to deal with dropping profit lines and tourist numbers. While some are taking the "duck and cover" approach, other shrewd financiers are eyeing the downturn as an incredible opportunity to regroup and lay foundations for future mega-enterprises.

One such person is the Gambling Empress Pansy Ho, who is the 45 year old daughter of Macau magnate Stanley Ho.

Ho's bold plans come in the face of a literal slew of financial challenges. High-rolling gamblers have cut down on their gaming as a result of the economic crisis, leading to a steady drop in Macau's gaming revenue over the last three quarters of last season (a total drop of 5.7% since December 2007). The earnings for the fourth quarter were actually lower than that of the first quarter.

Travel restrictions
The Chinese government hasn't helped things either, as they've intensified travel restrictions on Chinese nationals to Macau. Previously, citizens were allowed to visit the gambling haven twice a month, but this number has been slashed to once every three months.

Another burden that sits on Ho's shoulders is the breakup of the family's monopoly on Macau gambling, as US-based investors secured a stronghold of newer casinos in the city, slicing off neat margins that used to belong to the Ho family.

New projects a-coming
Yet the middle-aged heiress is seemingly unfazed by the recent developments. Showing her forward-thinking attitude, she recently signed a preliminary agreement through a company she manages, Shun Tak Holdings Ltd, with a business partner in Dubai to build a new hotel in Macau's Cotai area, which used to be a boomtown of development.

In addition, she is also spearheading negotiations with the Macau government to allow the realization of her joint venture with US gambling giant MGM to build a second casino in Cotai.

Her strategy, and that of other frugal business people at the moment, can best be summed up by the comments of Gavin Ho, of CLSA Asia-Pacific Markets. "As the economy recovers and as Macau becomes more ready in terms of infrastructure, [casino operators] will be in a position to welcome high levels of gaming revenue."