Other amusement and recreation activities dominates Arts, entertainment and recreation sector
Based on the final results of the 2013 Annual Survey of Philippine Business and Industry, there were 3,099 establishments in the formal sector of the economy engaged in Arts, entertainment and recreation. A total of 2,812 establishments or 90.7 percent had a total employment (TE) of less than 20 while 287 or 9.3 percent had TE of 20 and over.
Other amusement and recreation activities topped among the industries of the sector with 1,296 establishments or 41.8 percent of the total. This was followed by gambling and betting activities with 1,207 establishments (38.9%). Libraries, archives, museums and other cultural activities had the least number of establishments with 33 or 1.1 percent of the total. Figure 1 shows the percentage distribution of establishments by industry group in 2013.
Gambling and betting activities generates the highest employment
Employment for the sector reached a total of 49,998 in 2013. Paid employees accounted for 98.5 percent (49,258) and the remaining 740 or 1.7 percent were working owners and unpaid workers. More than half (61.6%) or 30,793 workers of the total employees worked for establishment with TE of 20 and over and the remaining workers (19,205 or 38.4%) worked in establishments with TE of less than 20.
Among industries, gambling and betting activities had the highest number of employees with 25,560 (51.1%). Other amusement and recreation activities ranked second with 14,170 (28.3%) while sports activities industry was third with 6,870 or 13.7 percent. Distribution of employment by industry group for the sector is shown in Figure 2.
Gambling and betting activitiy pays the highest compensation
Total compensation paid by Arts, entertainment and recreation sector amounted to PHP15.9 billion, translating to an average annual compensation of PHP321,944 per paid employee. For establishment with TE of 20 and over, the total compensation reached PHP13.1 billion amounting to an average annual compensation of PHP426.5 thousand per paid employee. On the other hand, establishments with TE less than 20 paid only PHP2.8 billion or PHP148.7 thousand per employee.
Across industry group, gambling and betting activities paid the highest average annual compensation of PHP497.0 thousand per employee followed by creative, arts and entertainment activities with PHP206.7 thousand. On the other hand, establishments of other amusement and recreation activities had the lowest average annual pay of PHP103.1 thousand per employee. Figure 3 shows the average annual compensation per paid employee for arts, entertainment and recreation activities by industry group.
Total income amounts to PHP82.8 billion
Gross income earned in 2013 by Arts, entertainment and recreation establishments reached PHP82.8 billion. Eighty-six percent of the gross income was contributed by establishments with TE of 20 and over amounting to PHP71.4 billion. Gambling and betting activities industry was the top contributor with income of PHP66.6 billion or 80.4 percent of the total. This was followed by other amusement and recreation activities industry with PHP7.4 billion (9.0%). Libraries, archives, museums and other cultural activities had the least income of PHP1.3 billion (1.6%).
Total expense reaches PHP55.1 billion
Total expense incurred by the sector summed up to PHP55.1 billion. Gambling and betting activities spent the highest with PHP41.2 billion (74.8%), followed by other amusement and recreation activities with payments of PHP6.4 billion (11.6%). Libraries, archives, museums and other cultural activities spent the least with PHP1.1 billion (2.0%). Figure 4 shows the distribution of income and expenss of the sector by industry group in 2013.
Income-expense ratio recorded at 1.5
The income generated per peso expense was computed at 1.5. Among industries, gambling and betting activities recorded the highest with PHP1.6 income per peso expense. Three industry groups reported a ratio of 1.2 and these were the following:
- Libraries, archives, museums and other cultural activities
- Sports activities
- Other amusement and recreation activities
Value added amounts to PHP52.3 billion
Value added for the sector was estimated at PHP52.3 billion. For establishments with TE of 20 and over, value added was PHP46.9 billion while for establishments with TE less than 20 value added was PHP5.4 billion.
Gambling and betting activities contributed PHP44.5 billion or 85.2 percent of the total value added of the sector. Other amusement and recreation activities had a total value added of PHP3.4 billion (6.5%) while sports activities provided PHP2.9 billion or 5.5 percent. The least value added was accounted for by libraries, archives, museums and other cultural activities with PHP639.3 million (1.2%). Figure 5 shows the distribution of value added for arts, entertainment and recreation activities by industry group in 2013.
Employees of gambling and betting activities were the most productive in 2013
Value added per worker, a measure of labor productivity, was estimated at PHP1.0 million per worker in 2013. The highest labor productivity among industries was recorded by gambling and betting activities valued at PHP1.7 million per worker. Other amusement and recreation produced the lowest with a value of PHP238.0 thousand per worker.
Gross addition to fixed assets totals PHP1.3 billion
Gross addition to fixed assets in 2013 totaled PHP1.3 billion. Establishment with TE of 20 over recorded PHP1.2 billion while establishments with TE of less than 20 reached PHP127.8 million.
Among industries gambling and betting activities recorded the highest amount of PHP378.6 million (28.4%). This was followed by libraries, archives, museums and other cultural activities with acquired gross additions of PHP313.9 million (23.6%). Creative, arts and entertainment activities recorded the least of PHP119.9 million or 9.0 percent.
Sports activity posts the highest change in inventories
Change in inventories, defined as the value of ending less the beginning inventory, amounted to negative PHP122.0 million in 2013. Change in inventories for establishments with TE 20 and over and TE of less than 20 posted negative PHP121.8 million and PHP212 thousand, respectively. Among industries, sports activities recorded the highest change in inventories which amounted to PHP9.9 million.
Subsidies in 2013 amounts to PHP17.0 billion
Subsidies received from the government in 2013 reached PHP17.0 billion. Gambling and betting activities received the largest subsidy from the government amounting to PHP16.8 billion (98.8 %). Other industries which received subsidies were creative, arts and entertainment activities, (PHP202.0 million); sports activities (PHP4.2 million) and other amusement and recreation activities (PHP1.2 million).
Sales from e-commerce posts PHP165.3 million
Sales from e-commerce transaction was recorded at PHP165.3 million. Libraries, archives, museums and other cultural activities had the most sales amounting to PHP160.4 million or 97.0 percent of the total.
This Special Release presents the final results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Arts, Entertainment and Recreation 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.
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 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, 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:
- 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). 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.
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.
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
- 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
- j = 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
- Nsp = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
- nsp = 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
- c = 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
- mc = 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
- 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 an industry 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
- 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
- j = 1,2,3..., mcp establishment
- mcp = number of establishments in the certainty strata in TE of 20 and over in an industry 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
- 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
- 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)
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.
Field operations of the 2013 ASPBI were scheduled from September to December 2014.
Total response rate for Arts, Entertainment and Recreaton sector was 84.9 percent (292 out of 344 establishments). This include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, six 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 paid by and under the control of the establishment. Included are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded 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 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.
Expense 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.
Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.
Valued added is gross output less intermediate input. Gross output for Arts, Entertainment and Recreation 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 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 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.