Restaurants and mobile food service activities dominate the sector
Preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide showed that there were a total of 5,475 establishments with total employment (TE) of 20 and over engaged in accommodation and food service activities in the formal sector of the economy. Restaurants and mobile food service activities had the highest number of establishments at 3,956 or 72.3 percent, followed a far by short term accommodation activities with 1,113 establishments or 20.3 percent. Beverage serving activities ranked third with 318 establishments or 5.8 percent. Other accommodation recorded the lowest number of 7 establishments or 0.1 percent. Figure 1 shows the percentage distribution of establishments by industry group in 2013.
Most establishments are located in the National Capital Region
By geographic location, NCR was the home to most number of establishments with 2,290 (41.8%). CALABARZON placed a distant second with 665 establishments (12.1%), Completing the top three is Central Luzon (Region III) with 541 establishments (9.9%). Autonomous Region in Muslim Mindanao (ARMM) had the least with only 8 establishments or 0.1 percent. ( See Table 2)
Restaurants and mobile food service activities generate the highest employment
A total of 222,285 workers were employed by the sector in 2013. Of the total employment, 219,844 or 98.9 percent were paid employees while the remaining 1.1 percent or 2,441 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 144.2 thousand or 64.9 percent. Short term accommodation garnered 29.8 percent share or 66.2 thousand employees to the total employment. The remaining 11.9 thousand employees or 5.3 percent were distributed among beverage serving activities, event catering and other food service activities, and other accommodation.
Region-wise, NCR was the top employer with 84.6 thousand employees or 38.1 percent. CALABARZON followed with 30.7 thousand employees or 13.8 percent share, and Central Visayas (Region VII) with 21.6 thousand (9.7%). ARMM registered the least employment with only 0.2 thousand employees or a mere 0.1 percent. (Table 2)
Restaurants and mobile food service activities pay the highest compensation
Total compensation paid by accommodation and food service activities amounted to PHP35.4 billion, translating to an equivalent average annual compensation of PHP160,848 per paid employee.
By industry group, restaurants and mobile food service activities paid the highest compensation to its employees amounting to PHP20.7 billion or 58.5 percent share of the total compensation. Short term accommodation activities paid PHP13.4 billion (37.9%). Those working in other accommodation received the least compensation of PHP35.5 million only or a mere 0.1 percent of the total compensation. Figure 3 shows the distribution of compensation paid for the sector.
By region, labor payments in NCR amounted to PHP18.9 billion or 53.3 percent of the total compensation paid nationwide. Employers in Central Luzon paid PHP3.5 billion to its workers or 9.8 percent not far behind was CALABARZON with PHP3.4 billion or (9.6%). ARMM was the least payer with only PHP16.6 million or 0.05 percent.
Short term accommodation activities employees earn the highest in 2013
Employees in short term accommodation activities were the highest earners in 2013 with an average annual compensation of PHP205.4 thousand per paid employee. Other accommodation activities paid an average annual remuneration of PHP167.6 thousand. The lowest earners were employees from the beverage serving activities with only PHP85.4 thousand average annual compensation. (Table 3)
Region-wise, employees from NCR received the highest average annual compensation of PHP225.5 thousand per paid employee, followed by Central Luzon with PHP166.5 thousand, average annual compensation. MIMAROPA ranked third with PHP128.7 thousand, while the least earners were employees from ARMM with an average compensation of PHP79.7 thousand. Table 4 shows the average annual compensation per paid employee by region.
Total income amounts to PHP251.3 billion; restaurants and mobile food service activities produce the largest income
Total income earned in 2013 by the sector reached PHP251.3 billion. Restaurants and mobile food service activities was the top contributor with PHP173.5 billion or 69.0 percent of the total income. Short term accommodation activities generated PHP70.5 billion or 28.1 percent. Event catering and other food service activities shared 1.4 percent or PHP3.6 billion. The least contributor of income was generated by other accommodation with PHP148.1 million or merely 0.1 percent.
Among regions, more than half of the total income of the sector was earned by establishments located in NCR amounting to PHP131.2 billion or 52.2 percent. CALABARZON followed next with PHP25.7 billion (10.2 %). Completing the top three regions was Central Luzon with PHP22.7 billion or 9.0 percent of the total income. ARMM registered the least income with PHP61.2 million or just 0.02 percent.
Total expense reaches PHP206.4 billion; restaurants and mobile food service activities spend the highest
Total expense by the sector summed up to PHP206.4 billion. Restaurants and mobile food service activities disbursed the highest amount of PHP140.3 billion or 68.0 percent. Short term accommodation activities incurred a total expense of PHP60.0 billion or 29.1 percent. Other accommodation, having the lowest number of establishments spent the least with PHP129.0 million.
Across regions, NCR spent the largest as it incurred PHP102.4 billion or 49.6 percent. CALABARZON, followed with PHP22.8 billion (11.1%) while Central Luzon disbursed PHP19.0 billion or 9.2 percent. As expected, the least expense was recorded by ARMM with only PHP38.1 million or simply 0.02 percent.
Income-expense ratio amounts to 1.22; restaurant and mobile food service activities record the highest returns
Income-expense ratio, the income generated per PHP1 expense, amounted at 1.22. Among industries, restaurant and mobile food service activities recorded the highest with 1.24 income per PHP1 expense followed by beverage serving activities with 1.20 income per PHP1 expense.
Value added amounts to PHP102.1 billion
Value added was estimated at PHP102.1 billion for accommodation and food service activities. Total value added of restaurants and mobile food service activities was recorded at PHP62.9 billion or 61.6 percent. Short term accommodation activities had a total value added of PHP36.3 or 35.5 percent. The least value added was accounted for by other accommodation with PHP71.4 million or just merely 0.07 percent.
Short term accommodation activities employees are the most productive
Value added per worker, a measure of labor productivity, was valued at an average of PHP459.2 thousand per employee. Among industries, short term accommodation had the highest average at PHP547.5 thousand. Next was restaurants and mobile food service activities with PHP436.5 thousand while the least was recorded for beverage serving activities, at PHP179.6 thousand.
Among regions, NCR employees were the most productive and was valued at an average of PHP686.3 thousand per employee. This was followed by Central Luzon with PHP451.1 thousand while the least productive is logged by SOCCSKSARGEN with PHP143.6 thousand.
Gross additions to tangible fixed assets totals PHP16.4 billion
Gross additions to tangible fixed assets in 2013 totaled to PHP16.4 billion. By industry, restaurants and mobile food service activities recorded the highest amounting to PHP9.7 billion or 59.1 percent. Short term accommodation activities had PHP6.6 billion or 40.0 percent while the least was recorded by other accommodation with PHP17.9 million or 0.1 percent.
Total change in inventories amounts to PHP1.3 billion
Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP1.3 billion in 2013. Restaurants and mobile food service activities recorded the highest with PHP865.7 million or 64.5 percent, short term accommodation activities had PHP414.1 million or 30.9 percent. The remaining 4.6 percent was distributed to beverage serving activities, event catering and other food service activities and other accommodation with 3.4 percent, 1.2 percent and 0.03 percent respectively.
Sales from E-commerce amounts to PHP8.9 million
In 2013 E-commerce sales amounted to PHP8.9 billion. Almost all sales from e-commerce transactions was recorded by short term accommodation activities amounting to PHP8.7 billion or 97.8 percent. Only 2.2 percent or PHP196.3 million was accounted by restaurants and mobile food service activities, event catering and other food service activities and other accommodation.
Across regions, NCR recorded the highest e-commerce transaction with PHP6.1 billion or 69.3 percent and accounts to more than the half of the total e-commerce. This was followed by Western Visayas and Northern Mindanao with e-commerce sales of PHP2.2 billion and PHP168.8 million respectively.
This Special Release presents the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for Accommodation and Food Service Activities sector for establishments with total employment of 20 and over.
The 2013 Annual Survey of Philippine Business and Industry (ASPBI) is a forerunner of the 2010 ASPBI. It aims to collect and generate information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2013.
The conduct of the ASPBI is governed by authority of the following legislative acts and presidential directives:
- Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities). It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.
Section 27 of Republic Act No 10625 states that:
"... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) yearimprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthfulcomplete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against, such corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."
Confidenciality of Information
- Republic Act 10625 (Philippine Statistical Act of 2013)
Section 27 of RA 10625 states that:
"... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year,
- Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and employees dated February 20, 1989)
Section 7 of RA 6713 states that:
"... (c) Disclosure and/or misuse of confidential informatiom. Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either: (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."
Scope and Coverage
The 2013 ASPBI 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:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2013 ASPBI covered only the following economic units:
- 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 Classification (PSIC).
The initial estimate of the 2013 List of Establishments (LE), the frame used to draw the sample establishments for the 2013 ASPBI, registered a total of 941,000 establishments in operation nationwide in 2013. Out of this number, 72 percent or 678,000 establishments belong to the informal sector and only 28 percent or 263,000 establishments made up the formal sector.
Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
- Transportation 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)
- Education (P)
- Human Health and Social Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2013 ASPBI 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 organizations (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 only (EO=2) is an establishment which has a separate main office located elsewhere.
- Establishment and Main Office (EO=3) is one where the establishment 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). (EO). 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 proprietorship 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 whether they are stock or non-stock corporations.
- Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
- 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 2013 ASPBI:
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 December 31, 2013 was used for the 2013 ASPBI.
The 2013 ASPBI and 2013 SICT uses stratified systematic sampling design with 5-digit PSIC serving as industry strata (or industry domain) and employment size as the second stratification variable.
Selection of sample establishment for the 2013 ASPBI 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.
Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)
The estimate of the total of a characteristic (X ÃƒÅ’Ã¢â‚¬Å¡_phs) for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is
- i = 1, 2, 3,…,nphs establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region
- s = denotes the non-certainty employment strata in TE of 20 and over
- h = denotes for industry domain
- p = denotes for 17 regions
- xphsi = value of the ithestablishment in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- Wphsi = weight of the ithestablishment in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- Nphs = total number of establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- nphs = total number of sampled establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
The estimate of the total of a characteristic (X ÃƒÅ’Ã¢â‚¬Å¡phc)for the non-certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is
- i = 1, 2, 3,…,mphc establishments in cthnon-certainty stratum in TE of 20 and over in hth industry domain in the pth region
- c = denotes the certainty stratum in TE of 20 and over
- h = denotes for industry domain
- p = denotes for 17 regions
- xphcj = value of the jthestablishment in cthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- mphc = total number of sampled establishment in cthcertainty stratum in TE of 20 and over in hth industry domain in the hth industry domain in the pth region.
Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic (X ÃƒÅ’Ã¢â‚¬Å¡_ph) for the industry domain in each region (Geopraphic domain) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
- h = denotes for industry domain
- s = 1, strata of TE 20-29, and 2, strata of TE 50-99, of the non-certainty employment strata in hth industry domain in the pth region.
- c = 1, 2,..., Kph certainty stratum in TE of 20 and over in hth industry domain in the pth region.
- kphcj = total number of certainty stratum in TE of 20 and over in hth industry domain in the pth region
- p= denotes for 17 regions.
At the national level estimate of the total of a characteristic (X ÃƒÅ’Ã¢â‚¬Å¡h) for each industry domain was obtained by aggregating the estimates (X ÃƒÅ’Ã¢â‚¬Å¡ph) for the particular industry domain from all the regions
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight is
- W1phsi = is the adjusted weight for non-certainty stratum
- Nphs = total number of establishments in sth non-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- n1phs= total number of responding establishments in sth non-certainty employment strata in TE of 20 and over in hth industry domain in the pth region..
The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.
The sample establishments responded also to the survey through the use of Web-based version of the 2013 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.
Total response rate for accommodation and food service activities sector was 90.9 percent (923 out of 1,015 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, seven responded online.
CONCEPTS AND DEFINITIONS OF TERMS
Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
Total employment is the number of persons who worked in for the establishment as of November 15, 2013.
Paid employees are 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.
Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.
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, Phil Health, 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.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser 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.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
Expense refers to cost incured by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Valued added is gross output less intermediate input. Gross output for accommodation and food service activities is the sum of 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; goods purchased for resale, research and development expense; environmental protection expense; royalty fee; franchise fee and other expense.
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.
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.