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Release Date :
Reference Number :
274

Supporting and auxiliary transport activities; activities of travel agencies is the biggest industry in terms of number of establishments

  1. The transport, storage and communications sector covered an estimated total number of 9,539 establishments in the entire country, according to the results of the 2005 Annual Survey of Philippine Business and Industry. About 86.8 percent (8,283 establishments) of these had an average total employment (ATE) of less than 20 employees while establishments with an average total employment (ATE) of 20 or more accounted for 13.2 percent (1,256 establishments). (See Tables 1 to 3)

  1. Establishments engaged in supporting and auxiliary transport activities; activities of travel agencies (PSIC I63), accounted for 45.3 percent share (4,324 establishments) of the total establishments. Air transport (PSIC I62), on the other hand, recorded the lowest proportion to the total establishments with 0.2 percent (22 establishments).
  2. For establishments with ATE of 20 or more, National Capital Region (NCR) registered the highest number with 782 establishments (62.3%). CALABARZON in second place reported 83 establishments (6.6%). Autonomous Region in Muslim Mindanao (ARMM) and Cordillera Administrative Region (CAR) had the least number of 2 establishments (0.2%) each. (See Table 4)

On the average, there are 22 workers per establishment

  1. The total employed persons in 2005 reached 213,050. Supporting and auxiliary transport activities; activities of travel agencies (PSIC I63), the sectors biggest industry division in terms of number of establishments, accounted for 36.8 percent of the total employment or 78,451 workers. This was followed by land transport; transport via pipelines (PSIC I60) with 55,592 workers.
  2. Each transport, storage and communications establishment employed about 22 workers on the average. Air transport (PSIC I62) had the highest average employment per establishment of 477. Water transport (PSIC I61) had the least with 17 workers per establishment. (See Table R1)
  3. Transport, storage and communications sector was dominated by male workers in 2005. There were 155,880 males (73.2%) and 57,170 females (26.8%) working in the sector. In terms of sex ratio there were 273 males for every 100 females working in this sector. The land transport; transport via pipelines (PSIC I60) had the highest sex ratio of 745 while air transport (PSIC I62) had the lowest sex ratio of 149. (See Table 1)

Workers in air transport receive the highest average monthly compensation

  1. Total compensation paid during the year 2005 amounted to PhP47.46 billion, of which PhP20.25 billion or 42.7 percent was paid to workers engaged in postal and telecommunications services (PSIC I64).
  2. Paid employees in this sector received an average monthly compensation of PhP19,163. Workers in air transport (PSIC I62) and postal and telecommunications services (PSIC I64) received an average monthly compensation higher than the national average with PhP50,043 and PhP34,969, respectively.

Postal and telecommunications services generate the highest revenue worth PhP271.60 billion

  1. Total revenue earned by transport, storage and communications sector was PhP498.84 billion while the total cost reached PhP350.61 billion in 2005. Revenue per peso cost was valued at PhP1.42.
  2. Postal and telecommunications services (PSIC I64) had the biggest proportion to the total revenue and total cost with 54.4 percent (PhP271.60 billion in revenues) and 48.0 percent (PhP168.31 billion in cost), respectively.

Establishments engaged in postal and telecommunications services account for the highest labor productivity

  1. Value added was estimated at PhP279.25 billion. Postal and telecommunications services contributed the biggest share of 71.9 percent or PhP200.75 billion.
  2. Labor productivity, measured as the ratio of value added per paid employee, was estimated at PhP1.35 million. Workers in the postal and telecommunications services (PSIC I64) produced the highest labor productivity for the sector valued at PhP4.16 million.
  3. Gross addition to fixed assets reached PhP40.40 billion. Postal and telecommunications services (PSIC I64) contributed 84.2 percent of the gross addition to fixed assets amounting to PhP34.01 billion.
  4. Change in total inventories for the sector, as derived from the inventory reports of establishments, added up to PhP75.25 million in 2005.
  5. Subsidies received by the sector was valued at PhP417.68 million. Land transport; transport via pipelines (PSIC I60) recorded the highest share of PhP197.68 million or 47.3 percent. This was followed by postal and telecommunications services with PhP119.50 billion or 28.6 percent.

 


TECHNICAL NOTES

Scope and Coverage

The 2005 Annual Survey of Philippine Business and Industry (ASPBI) formerly known as Annual Survey of Establishments (ASE) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2005. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC).

These establishments were classified into 14 sectors one of which is on Transport, storage and communications (Sector I), which covered all establishments, except operators of tricycles, pedicabs, jeepney, and asian utility vehicle (AUV); government postal and telegraphic offices; and booking offices of foreign airlines. The sector is composed of establishments engaged in five industry divisions, namely, land transport; transport via pipelines (I60); water transport (I61); air transport (I62); supporting and auxiliary transport activities; activities of travel agencies (I63); postal and telecommunications services (I64).

All transport, storage and communications establishments nationwide with average total employment (ATE) of 200 and over were covered on a 100 percent basis and those with ATE less than 200 were selected using simple random sampling.

Response

A total of 1,477 or 96.9 percent responded out of the 1,525 samples drawn for the sector but effective response rate is 61.3 percent only. Adjustments for non-response were made through imputations.

Concepts and Definition of terms

Establishment is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location. It is also defined as the unit that is engaged in the production of the most homogenous group of goods and services, usually at one location, sometimes over a wider area for which separate records are available that can provide data concerning the production of these goods and services and the materials, labor and physical resources used in the production.

Economic activity or business is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.

Transport establishment - Bus line, air line, shipping line, agency, broker or transport operator engaged in providing vehicles for the transport of passenger or freight through regularly scheduled operation, charter, rental or fee basis; and services incidental to transport such as maintenance and operation of piers, terminals, depots, pilotage, forwarding, packing and crating.

Storage and warehousing establishment - Brokerage, agency or office engaged in the operation of storage facilities and warehouse for hire by the general public for storage of such items as farm products, food, furniture and other household goods, textiles and lumber.

Telecommunication establishment - Station, office or agency engaged in transmission of sound, images, data or other information via cables, broadcasting, relay or satellite.

Total Employment is the number of persons who worked in or for the establishment as of November 15, 2005.

Paid employees are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.

Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.

Salaries and wages are payments in cash or in kind, prior to deduction for employees contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.

Revenue refers to cash received and receivables for goods sold and services rendered.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

Gross additions to fixed assets refer to the cost of acquisition of fixed assets acquired in 2005 less the value of sales of fixed assets during the year.

Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.

Capital expenditures refer to the cost of acquisition of fixed assets acquired in 2005 whether or not full payments have been made.

Change in Inventories as a derived indicator is computed as the value of ending inventory less the value of beginning inventory.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.

Inventories refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchasers price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Value Added is equal to the sum of total revenue and cost of fixed assets produced on own account less the following items - cost of materials and supplies purchased; cost of goods purchased for resale; cost of real estate purchased for sale; cost of fuels purchased to run motor vehicles, machinery and other equipment; cost of electricity purchased; cost of industrial services done by others; cost of non-industrial services done by others; cost of computer software expenses; cost of research and experimental development; and other cost (except indirect taxes, interest expense, depreciation and bad and doubtful debts); this result being corrected for change in inventories.


Source:   National Statistics Office
                 Manila, Philippines

 

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