Research Article
Capital Expenditure and Natural Risk Incentives Analysis for the Hotel Industry In Padang
@INPROCEEDINGS{10.4108/eai.20-1-2018.2284281, author={Masyhuri Hamidi and Fajri Adrianto}, title={Capital Expenditure and Natural Risk Incentives Analysis for the Hotel Industry In Padang}, proceedings={Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia}, publisher={EAI}, proceedings_a={WMA-1}, year={2019}, month={9}, keywords={capital expenditure decision natural risk}, doi={10.4108/eai.20-1-2018.2284281} }- Masyhuri Hamidi
Fajri Adrianto
Year: 2019
Capital Expenditure and Natural Risk Incentives Analysis for the Hotel Industry In Padang
WMA-1
EAI
DOI: 10.4108/eai.20-1-2018.2284281
Abstract
This study is aiming at studying the factors that will influence the capital expenditure decision for Hotel businesses in Padang, where there is a high natural environment risk specifically the earthquake and tsunami. By asking several hotels ranging from two star up to four star hotels, this study have found that location decision does not affect the risk on investment for the hotel in Padang City. The factor that does have influence on the investment is the inflows activity from the tourism in Padang. The high potential of inflow in the tourism sector can cover the capital cost and risk that have been taken by the investor. The support from financial organization in helping with the capital is also the factor that are being considered in the hotel industry in Padang because the higher the supply of financial helps can also decrease the cost of capital.