Restaurants and mobile food service activities dominate Accommodation and Food Service Activities section
Based on the preliminary results of the 2012 Census of Philippine and Industry (CPBI) conducted nationwide, the Philippines had a total of 6,229 establishments with total employment (TE) of 20 and over engaged in Accommodation and Food Service Activities. Figure 1 shows that restaurants and mobile food service activities garnered the highest number of establishments at 4,477 (71.9%) followed by short term accommodation activities with 1,239 establishments or 19.9 percent. Other accommodation recorded the lowest number of establishments with 9 or 0.1 percent only. (Table 1)
Most establishments are located in the National Capital Region (NCR)
On the regional level, NCR had the most number of establishments with 2,642 (42.4%). CALABARZON placed second with 743 establishments (11.9%), Central Luzon followed with 632 establishments (10.1%). Autonomous Region in Muslim Mindanao (ARMM) had the least with only 10 establishments (0.2 %). (Table 2)
Restaurants and mobile food service activities generate the highest employment
A total of 258,102 workers were employed in Accommodation and Food Service Activities section in 2012. Out of the total employment, 254,484 or 98.6 percent were paid employees while the remaining 1.4 percent or 3,618 were working owners and unpaid workers.
Figure 2 shows that restaurants and mobile food service activities, having the largest share in terms of number of establishments, had the most number of employees with 171,961 (66.6%). Short term accommodation garnered 27.2 percent or 70,278 employees. The remaining 15,863 or 6.1 percent were distributed to beverage serving activities, event catering and other food service activities, and other accommodation.
Region wise, NCR was the top employer with 113,391 employees (43.9%). CALABARZON followed with 29,519 employees (11.4%), and Central Luzon with 24,703 (9.6%). ARMM registered the least employment with only 257 employment or 0.1 percent. (Table 2)
Restaurants and mobile food service activities pay the highest compensation
The total compensation paid by Accommodation and Food Service Activities amounted to PHP38.4 billion, an equivalent of PHP150,967 average annual compensation per paid employee.
By industry group, restaurants and mobile food service activities paid the highest compensation to its employees amounting to PHP24.3 billion or 63.2 percent of the total. Short term accommodation activities paid PHP12.7 billion or 33.0 percent. Those working in other accommodation received the least compensation of PHP18.3 million. (Table 1)
Table 2 shows that labor payments in NCR amounted to PHP22.3 billion or 58.2 percent of the total compensation paid nationwide. Employers in CALABARZON paid PHP3.8 billion to its workers or 10.0 percent followed by Central Visayas with PHP3.0 billion (7.8%). ARMM was the least payer with only PHP14.8 million.
Short term accommodation activities employees earn the highest in 2012
Short term accommodation activities employees were the highest earners in 2012 with an average annual compensation of PHP183.6 thousand per paid employee. Employees of restaurants and mobile food service activities received an average annual remuneration of PHP142.2 thousand. The lowest earners were employees from beverage serving activities with only PHP85.9 thousand average annual compensation. (Table 3)
By region, employees from NCR received the highest average annual compensation of PHP198.9 thousand per paid employee, followed by CALABARZON with PHP132.2 thousand average annual compensation. Cordillera Administrative Region (CAR) ranked third with PHP129.1 thousand, while the least earners were employees from ARMM with an average compensation of PHP60.7 thousand. Table 4 shows the average annual compensation per paid employee by region.
Total income amounts to PHP267.5 billion; Restaurants and mobile food service activities produce the largest income
Total income earned in 2012 by Accommodation and Food Service Activities section reached PHP267.5 billion. Restaurants and mobile food service activities was the top contributor with PHP190.3 billion or 71.1 percent of the total income. Short term accommodation activities generated PHP67.6 billion (25.3%). Beverage serving activities shared 2.1 percent or PHP5.7 billion. The least contributor of income was generated by other accommodation with PHP156.2 million (0.1%).
More than half of the total income of the Philippines was earned by NCR amounting to PHP151.6 billion (56.7%). CALABARZON followed next with PHP25.8 billion or 9.6 percent. Completing the top three regions was Central Visayas with PHP22.6 billion or 8.5 percent of the total income. ARMM registered the least income with PHP59.8 million.
Total expense reaches PHP236.0 billion; Restaurants and mobile food service activities spend the highest
Total expense for operating the industry summed up to PHP236.0 billion. Restaurants and mobile food service activities disbursed the highest expense of PHP169.4 billion (71.8%). Short term accommodation activities incurred a total expense of PHP58.9 billion or 25.0 percent. Having the lowest number of establishments, other accommodation spent the least with PHP88.6 million.
By region, NCR spent the largest as it incurred PHP132.5 billion (56.2%) for operating the industry. CALABARZON followed with PHP24.2 billion (10.2%) while Central Visayas disbursed PHP20.3 billion or 8.6 percent. As expected, the least expense was recorded by ARMM with only PHP53.5 million.
Income-expense ratio amounts to 1.13; Other accommodation record the highest returns
Income-expense ratio, the income generated per PHP1 expense, amounted to 1.13. Among industries, other accommodation recorded the highest with 1.76 income per PHP1 expense followed by beverage serving activities with 1.28 income per PHP1 expense.
Value added amounts to PHP86.9 billion
Value added was estimated at PHP86.9 billion for Accommodation and Food Service Activities. Total value added of restaurants and mobile food service activities was recorded at PHP52.5 billion or 60.4 percent. Short term accommodation activities had a total value added of PHP30.5 billion or (35.0%). The least value added was accounted for by other accommodation with PHP112.9 million (0.1%).
Event catering and other food service activities employees are the most productive
Value added per worker, a measure of labor productivity, was valued at an average of PHP336.6 thousand per employee. Among industries, other accommodation had the highest average at PHP591.4 thousand, next was short term accommodation activities with PHP433.3 thousand while the least was recorded for beverage serving activities, at PHP222.4 thousand.
Gross additions to tangible fixed assets totals PHP9.6 billion
Gross additions to tangible fixed assets in 2012 totaled to PHP9.6 billion. By industry, short term accommodation activities recorded the highest amounting to PHP5.1 billion (53.0%). Restaurants and mobile food service activities had PHP4.1 billion (42.6%) while the least was recorded by event catering and other food service activities with PHP32.9 million or 0.3 percent.
Total change in inventories amounts to PHP2.3 billion
Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP2.3 billion for the section in 2012. Restaurants and mobile food service activities recorded the highest with PHP2.0 billion, while short term accommodation had PHP228.5 million.
Sales from E-commerce amounts to PHP140.4 million
Sales from e-commerce transaction was recorded only to short term accommodation activities amounting to PHP140.4 million. The rest of the industries for accommodation and food service activities did not have e-commerce transaction.
Region wise, NCR recorded the highest e-commerce transaction with PHP71.9 million (51.2%), more than half of the total e-commerce followed by Central Luzon with PHP22.0 million or 15.6 percent. The least e-commerce transaction was recorded in CAR with PHP1.8 million (1.3%).
Total assets reaches PHP253.2 billion
Total assets of short term accommodation activities was recorded at PHP171.5 billion or 67.7 percent, the largest among the industry. Restaurant and mobile food service activities reached PHP75.0 billion (29.6%).The least total assets was acquired by other accommodation with PHP564.0 million or 0.2 percent.
This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for Accommodation and Food Service Activities sector for establishments with total employment of 20 and over.
The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).
Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.
Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.
Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.
Scope and coverage
The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
1. Corporations and partnerships
2. Cooperatives and foundations
3. Single establishment with employment of 10 or more
4. Single proprietorship with branches
The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.
All establishments with total employment (TE) of 10 or more, and;
All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classificatin (PSIC).
The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).
Agriculture, Forestry and Fishing (A)
Mining and Quarrying (B)
Electricity, Gas, Steam and Air Conditioning Supply (D)
Water Supply; Sewerage, Waste Management and Remediation Activities (E)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
Transport and Storage (H)
Accommodation and Food Service Activities (I)
Information and Communication (J)
Financial and Insurance Activities (K)
Real Estate Activities (L)
Professional, Scientific and Technical Activities (M)
Administrative and Support Service Activities (N)
Private Education (P)
Human Health and Social Work Activities (Q)
Arts Entertainment, and Recreation (R)
Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
Branch (EO=2) is an establishment which has a separate main office located elsewhere.
Establishment and main office (EO=3) is one where the establishments is located in the same address as the main office and with branch/es elsewhere.
Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
Ancillary unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal organization (LO) This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole propietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whatever they are stock or non-stock corporations.
Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial Classification. The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size (SZ) of the Unit of Enumeration. The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
The following are the size codes and corresponding total employment used in the 2012 CPBI:
|TE Code||Total Employment||TE Code||Total Employment|
|0||1 - 4||5||100 - 199|
|1||5 - 9||6||200 - 499|
|2||10 - 19||7||500 - 999|
|3||20 - 49||8||1000 - 1999|
|4||50 - 99||9||2000 & Over|
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of September 30, 2012 was used for the 2012 CPBI.
Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.
Total response rate for Accomodation and Food Service Activities sector was 90.2 percent (3,823 out of 4,239 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 19 establishments responded online and one establishment submitted through e-mail.
For establishments with TE 20 and over, the response rate was 96.6 percent.
CONCEPTS AND DEFINITIONS OF TERMS
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in for the establishment as of November 15, 2012.
Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay, and other benefits.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Value added is gross output less intermediate input. Gross output for accommodation and food service activities is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.
E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.
Source: Philippine Statistics Authority - National Statistics Office