2013 Annual Survey of Philippine Business and Industry (ASPBI) - Accomodation and Food Service Activities : Final Results

Reference Number: 

2016-068

Release Date: 

Thursday, June 9, 2016

Majority of establishments are engaged in restaurant and mobile food service activities

The final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that the Philippines had a total of 28,188 establishments engaged in accommodation and food service activities.  A total of 22,701 establishments or 80.5 percent had a total employment (TE) of less than 20 while 5,487 or 19.5 percent had TE of 20 and over. (See Tables 2 and 3)

As shown in Figure 1, restaurants and mobile food service activities garnered the highest number of establishments with 21,329 establishments or 75.7 percent, followed by short term accommodation activities with 3,510 establishments or 12.5 percent.  Other accommodation recorded the lowest number of establishments with 316 establishments or 1.1 percent.

 

Restaurants and mobile food service activities post the highest employment

Employment in 2013 reached a total of 409,206.  Paid employees comprise 395,353 (96.6%) while the remaining 13,853 or 3.4 percent were working owners and unpaid workers. By size class, establishments with TE of 20 and over employed the largest number of workers comprising 223,722 persons or 54.7 percent and the remaining 185,484 persons (45.3%) were for establishments with TE of less than 20.

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 286.6 thousand or 70.0 percent.  Short term accommodation activities and beverage serving activities generated 86.0 and 28.2 thousand employees respectively.  The remaining 8.4 thousand or 2.0 percent employees were distributed to event catering and other food service activities and other accommodation.

 

Restaurants and mobile food service activities disburse the highest compensation

Total compensation paid by accommodation and food service activities amounted to PHP58.2 billion, translating to an equivalent average annual compensation of PHP147,104 per paid employee.  Of the total, PHP35.7 billion (61.4%) were disbursed by establishments with TE of 20 and over, while PHP22.5 billion (38.6%) were for establishments with TE of less than 20.

By industry group, restaurants and mobile food service activities paid the highest compensation to its employees amounting to PHP38.6 billion or 66.4 percent of the total. Short term accommodation activities paid PHP15.3 billion or 26.4 percent.  Those working in beverage serving activities received a compensation of PHP3.2 billion or 5.5 percent of the total compensation.  Figure 3 shows the distribution of compensation paid by accommodation and food service activities establishments for all employment sizes by industry group.

 

Short term accommodation activities employees receive the highest pay in 2013

Short term accommodation activities employees were the highest earners in 2013 with an average annual compensation of PHP184.3 thousand per paid employee.  Employees of restaurants and mobile food service activities received an average annual remuneration of PHP139.8 thousand.  The lowest earners were employees from other accommodation with PHP102.6 thousand average annual compensation.

 

Total income amounts to PHP405.0 billion; restaurants and mobile food service activities generate the highest income

Total income earned in 2013 by the sector reached PHP405.0 billion.  Restaurants and mobile food service activities was the top contributor with PHP302.2 billion or 74.6 percent of the total.  Short term accommodation activities generated PHP79.1 billion (19.5%) and beverage serving activities earned PHP17.8 billion (4.4%).  The remaining PHP5.9 billion income of the sector or 1.5 percent was distributed to event catering and other food service activities and other accommodation.

 

Total expense reaches PHP343.6 billion; restaurants and mobile food service activities spend the largest

Total expense by the sector summed up to PHP343.6 billion. Establishment with TE of 20 and over spent the largest amount for its operation at PHP220.9 billion (64.3%) while establishments with TE of less than 20 expended PHP122.8 billion or 35.7 percent.

Restaurants and mobile food service activities disbursed the highest expense of PHP255.0 billion or 74.2 percent, followed by short term accommodation activities with a total expense of PHP68.7 billion or 20.0 percent.  Having the lowest number of establishments, other accommodation spent the least with PHP761.6 million or only 0.2 percent.  Distribution of income and expense by industry group is shown in Figure 4.

 

Income-expense ratio stands at 1.2; other accommodation records the highest returns

Income-expense ratio, the income generated per PHP1 expense, stood at 1.2.  Among industries, other accommodation recorded the highest ratio with 1.3 income per peso expense. Rest of the industries generated 1.2 income per peso expense.

 

Value added reaches to PHP146.8 billion

Value added was estimated at PHP146.8 billion for accommodation and food service activities.  Among industries, establishments engaged in restaurants and mobile food service activities contributed the largest amounting to PHP98.7 billion or 67.2 percent.  This was followed by short term accommodation activities with total value added of PHP38.7 billion or 26.4 percent.  The least value added was accounted for by other accommodation with PHP450.6 million or 0.3 percent.

 

Short term accommodation employees are the most productive in 2013

Value added per worker, a measure of labor productivity, was valued at an average of PHP358.8 thousand per employee.  Among industries, short term accommodation activities had the highest average at PHP450.4 thousand, next was restaurants and mobile food service activities with PHP344.3 thousand while the least was recorded by beverage serving activities with PHP249.2 thousand.

 

Gross additions to tangible fixed assets totals PHP18.9 billion

Gross additions to tangible fixed assets in 2013 totaled PHP18.9 billion.  By industry, restaurants and mobile food service activities registered the highest amounting to PHP11.1 billion or 58.9 percent. Short term accommodation activities had PHP7.2 billion or 38.1 percent. Beverage serving activities had PHP434.4 million while the least was logged by other accommodation with PHP20.3 million or 0.1 percent.

Gross additions to tangible fixed assets in 2013 totaled PHP18.9 billion. By industry, restaurants and mobile food service activities registered the highest amounting to PHP11.1 billion or 58.9 percent. Short term accommodation activities had PHP7.2 billion or 38.1 percent. Beverage serving activities had PHP434.4 million while the least was logged by other accommodation with PHP20.3 million or 0.1 percent.

 

Total change in inventories amounts to PHP2.6 billion

Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP2.6 billion for the sector in 2013. Restaurants and mobile food service activities showed the highest with PHP1.8 billion or 69.5 percent, while short term accommodation had PHP629.7 million or 24.4 percent and the remaining PHP157.8 million was distributed to beverage serving activities, event catering and other food service activities and other accommodation.

 

Sales from E-commerce transactions reach PHP4.2 billion

E-commerce sales amounted to PHP4.2 billion. Almost all sales from e-commerce transaction was recorded by short term accommodation activities amounting to PHP3.4 billion (82.0%). Event catering and other food service activities followed with PHP601.6 million (14.3%) sales from e-commerce. The remaining 3.7 percent of e-commerce transaction was accounted to restaurants and mobile food service activities and other accommodation.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for Accomodation and Food Service Activities sector for all employment sizes in the formal sector of the economy.

The 2013 ASPBI is one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2013. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

To provide establishment respondents ease of accomplishing the 2013 ASPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of sectoral 2013 ASPBI questionnaires. 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 PSA website and downloading of e-questionnaire and submission thru e-mail.

Legal Authority

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) year imprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthful and complete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against the responsible officer, director, manager, and/or agent of said corporation.  In addition, such erring 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 thousand 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, subject to the degree of breech of information..."

  • 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 of establishments 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

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)

Sampling Design

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).  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.
  • 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.

Sampling Design

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.

Estimation Procedure

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

  •  s   = denotes the non-certainty employment strata in TE of less than 20
  •  Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
  •       =  1,2,3..., ns establishments
  •  Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

 

  •  Ns  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
  •  ns  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

b. Certainty Stratum

    The total of a characteristic for the certainty employment stratum in the Cth industry domain was

where:

  •    = denotes the certainty employment strata in TE of less than 20 in the cth industry
  •  xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
  •  j      = 1,2,3,..., mc establishments 
  •  m= number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

c. Total Estimate for TE of Less Than 20

    For all sections except B and C, national level estimates of the total of a characteristic for the industry domain was obtain by                  aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 

     where  d  denotes the industry domain.

For Establishments with TE of 20 and Over

a.   Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections G, H, I, J, K, L, M, N, P, Q, R and S.  

      The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for selected industry                    domain in each region was as

where:

  •  s     = denotes the non-certainty employment strata in TE 20 and over
  •  p     = 1,2,...,17 regions geographic domains
  •  xspj  = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region
  •  j         = 1,2,3..., nsp establishments
  •  Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

  •  Nsp  = total number of establishments in the non-certainty employment strata in TE of 20 and over for anindustry domain in each region
  •  nsp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b.   Certainty Stratum  

      The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was

where:

  •  s    = denotes the non-certainty employment strata in TE of 20 and over
  •  p    = 1,2,...17, regions (geographic domains)
  •  xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
  •      = 1,2,3..., mcp establishment  
  •  mcp = number of establishments in the certainty strata in TE of 20 and over in anindustry domain in each region

 

c.   Total Estimate for TE of 20 and Over  

      The estimate of the total of a characteristic for the industry domain in each (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry 

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp)  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

 

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was

where:

  •  Ns   = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
  •  n's   = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was

where:

  •  Nsp = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
  •  n'sp  = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 

Questionaire Design

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.

 

Response Rate

Total response rate for Accomodation and Food Service Activities sector was 91.1 percent (1,077 out of 1,182 establishments).  This include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, seven establishments responded online and none accomplished e-questionnaire. Others convert accomplished questionnaires to portable document format (PDF) and submit through e-mail. 

 

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 all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Exclude are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, homeworkers and workers receiving pure commissions only..

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s 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 includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

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.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price 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.

Valued added is gross output less intermediate input. Computation of gross output for real estate activities varies per industry as presented below.

Gross output (for Real estate activities with own or leased property) is equal to 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 inventory of real estate for sale; less cost of real estate purchased for sale.

Gross output (for Real estate activities on a fee or contract basis) is equal to the sum of total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income) and capital expenditures of fixed assets produced on own account.

Intermediate cost is equal to the sum of the following cost items: materials and supplies; fuels, lubricants, oils and greases; electricity and water; cost of industrial services done by others; cost of non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost; less change in inventory of materials and supplies; fuels, lubricants, oils and greases; and goods for resale.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

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 refer to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electonic Data Interchange (EDI) network, or other on-line system.

 


 

 

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