Paper Title
Capital Expenditure and Natural Risk Incentives Analysis for the Hotel Industry In Padang, Indonesia

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 stars up to four-star hotels, this study has found that location decision does not affect the risk of investment for the hotel in Padang City. The factor that does have an 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 the financial organization in helping with the capital is also the factor that is being considered in the hotel industry in Padang because the higher the supply of financial help can also decrease the cost of capital. Keyword - Capital Expenditure, Hotel Industry, Natural Environment Risk, Investment, Cost of Capital, Earthquake / Tsunami