2014 Annual Survey of Philippine Business and Industry (ASPBI) - Accomodation and Food Service Activities Sector For Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2017-003

Release Date: 

Friday, January 6, 2017

Restaurants and mobile food service activities record the biggest number of establishments

The preliminary results of the 2014 Annual Survey of Philippine and Industry (ASPBI) conducted nationwide showed that accommodation and food service activities sector had a total of 5,492 establishments with total employment (TE) of 20 and over in the formal sector of the economy.

Restaurants and mobile food service activities registered the highest number of establishments with 3,957 establishments or 72.0 percent of the total, followed by short term and other accommodation activities with 1,151 establishments or 21.0 percent.  Beverage serving activities ranked third, with 300 establishments or 5.5 percent.  Event catering and other food service activities recorded the lowest number of 84 establishments or 1.5 percent.  Figure 1 shows the percentage distribution of establishments by industry group in 2014.

 

By geographic location, NCR had the most number of accommodation and food service activities establishments with 2,303 (41.9%). CALABARZON placed second with 660 establishments (12.0%).  Completing the top three is Central Luzon (Region III) with 542 establishments (9.9%).  Autonomous Region in Muslim Mindanao (ARMM) had the smallest number of establishment with only 8 establishments or 0.1 percent.  Refer to Table 2.

 

Restaurants and mobile food service activities record the largest employment for the sector

The total number of employed persons during 2014 reached 244,169. Of the total, 240,995 or 98.7 percent were paid employees while the remaining 3,174 or 1.3 percent were working owners and unpaid workers.

The leading industry as to employment generation was restaurants and mobile food service activities with 155.6 thousand workers or 63.7 percent of the total.  Short term and other accommodation activities employed 76.2 thousand employees or 31.2 percent share.  Beverage serving activities had 8.0 thousand or 3.3 percent of the total employment.  The least number of employees was accounted for by event catering and other food service activities with 4.4 thousand or 1.8 percent.

 

By region, NCR was the top employer with 102.6 thousand employees or 42.0 percent. CALABARZON followed with 28.2 thousand employees or 11.5 percent, and Central Visayas with 24.3 thousand (10.0%).   ARMM registered the least employment with only 0.3 thousand employees or 0.1 percent.

 

Restaurants and mobile food service activities pay the largest compensation

Total compensation paid by the sector amounted to PHP38.3 billion, translating to an average annual compensation of PHP158.8 thousand per paid employee.

By industry group, restaurants and mobile food service activities paid the biggest compensation to its employees amounting to PHP20.3 billion or 53.1 percent of the total.  Short term and other accommodation activities employees were paid PHP16.4 billion (42.9%).  Those working in event catering and other food service activities received the lowest compensation of PHP623.2 million or 1.6 percent of the total compensation.  Figure 3 shows the distribution of compensation paid for the employees of the sector.

 

By region, labor payments in NCR amounted to PHP21.2 billion or 55.5 percent of the total compensation paid nationwide.  Establishments in Central Visayas paid PHP3.9 billion to its workers or 10.1 percent and not far behind was CALABARZON with PHP3.5 billion (9.2%).  As expected employees in ARMM received the least with only PHP13.8 million or 0.04 percent.

 

Establishments engages in short term and other accommodation activities employees are the top earners

Employees in short term and other accommodation activities were the highest earners in 2014 with an average annual compensation of PHP219.3 thousand per paid employee.  Event catering and other food service activities paid an average annual remuneration of PHP146.3 thousand to its employees.  Restaurants and mobile food service activities workers earned PHP131.8 thousand.  The lowest earners among industries were employees from the beverage serving activities with only PHP117.8 thousand average annual compensation.

On the regional level, employees from NCR received the highest average annual compensation of PHP208.8 thousand per paid employee, followed by Central Visayas with PHP161.2 thousand average annual compensation.  Central Luzon ranked third with PHP128.1 thousand.

 

Total income of the sector amounts to PHP292.1 billion; restaurants and mobile food service activities generates the biggest income

Total income realized by the sector in 2014 reached PHP292.1 billion.  Restaurants and mobile food service activities reported the biggest receipt of PHP179.4 billion or 61.4 percent of the total income.  With income valued at PHP101.9 billion or 34.9 percent of the total, those establishments engaged in short term and other accommodation activities ranked second. Beverage serving activities had a share of PHP6.1 billion or 2.1 percent.  The lowest income was generated by event catering and other food service activities with PHP4.8 billion or 1.6 percent.

Among regions, more than half of the total income of the sector was earned by establishments located in NCR amounting to PHP167.8 billion or 57.4 percent.  Central Visayas and CALABARZON followed with PHP26.1 billion (8.9%) and PHP25.9 billion (8.9%), respectively.  ARMM recorded the lowest income with PHP61.8 million.

 

Total expense reaches PHP248.7 billion; restaurants and mobile food service activities expend the highest

Total expense in 2014 by the sector was estimated at PHP248.7 billion.  Restaurant and mobile food service activities incurred the highest expenditure of PHP158.3 billion or 63.7 percent of the total.  Short term and other accommodation activities spent a total of PHP81.5 billion or 32.8 percent.  Beverage serving activities made a total expense of PHP5.5 billion (2.2%), while event catering and other food service activities spent the lowest with PHP3.3 billion or 1.3 percent.

By region, NCR was the top spender with PHP145.1 billion or 58.3 percent of the total expense of the sector. CALABARZON followed, with PHP22.0 billion (8.8%) while Central Visayas disbursed PHP20.8 billion or 8.4 percent.  The least expense was recorded by ARMM with only PHP41.8 million or mere 0.02 percent.

 

Income-expense ratio stands to 1.17; event catering and other food service activities records the highest returns

Income-expense ratio, the income generated per peso expense, stands at 1.17.  Among industries, event catering and other food service activities recorded the highest with 1.44 income per peso expense followed by short term and other accommodation activities with 1.25 income per peso expense.  The lowest ratio was recorded both by beverage serving activities and restaurants and mobile food service activities with 1.10 income per expense.

 

Value added totals to PHP114.3 billion in 2014

Value added for the sector was estimated at PHP114.3 billion for accommodation and food service activities.  Short term and other accommodation activities had a total value added of PHP56.7 or 49.6 percent of the total.  Value added of restaurants and mobile food service activities was recorded at PHP53.5 billion or 46.8 percent. The least value added was accounted for by beverage serving activities with PHP1.8 billion or 1.5 percent.

 

Short term and other accommodation activities employees are the most productive

Value added per worker, a measure of labor productivity, was valued at an average of PHP468.0 thousand per worker for the accommodation and food service activities sector.  Among industries, short term and other accommodation activities had the highest value added per worker at PHP744.2 thousand.  Next was event catering and other food service activities with PHP530.7 thousand while the least was recorded by beverage serving activities, at PHP220.5 thousand.

Among regions, NCR employees were the most productive with valued added recorded at an average of PHP653.4 thousand per employee.  This was followed by Central Visayas with PHP485.6 thousand and Central Luzon had an average of PHP427.9 thousand.  The least productive were those from ARMM with PHP144.0 thousand.

 

Gross addition to tangible fixed assets for the sector totals to PHP28.1 billion

Gross addition to tangible fixed assets for the sector totaled to PHP28.1 billion.  By industry, short term and other accommodation activities recorded the highest amounting to PHP24.2 billion or 86.1 percent.  Restaurant and mobile food service activities had PHP3.8 billion or 13.5 percent.  The remaining 0.5 percent was accounted for by event catering and other food service activities and beverage serving activities.

Region-wise, the top three regions contributed PHP24.8 billion or 88.5 percent of the total gross addition to tangible fixed assets.  The main contributor was NCR with PHP22.7 billion or 80.9 percent of the total.  Bicol Region and Central Luzon followed with PHP1.4 billion and PHP711.9 million, respectively.

 

Total change in inventories reaches to PHP1.4 billion

Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP1.4 billion in 2014.  Restaurants and mobile food service activities recorded the highest with PHP1.1 billion or 78.9 percent, short term and other accommodation activities had PHP243.6 million or 17.5 percent.  Beverage serving activities recorded PHP43.1 million (3.1%) while event catering and other food service activities had only PHP6.7 million or 0.5 percent change in inventories.

Among regions, the combined share of the top five regions amounted to PHP1.2 billion or 83.3 percent of the total change in inventories for the sector.  NCR generated the highest with PHP606.3 million or nearly half (43.6%) of the total.

The rest of the regions in the top five are the following:

      Central Visayas, PHP213.6 million (15.4%)

      Central Luzon, PHP160.5 million (11.5%)

      Western Visayas, PHP90.2 million (6.5%)

      CALABARZON, PHP87.7 million (6.3%)

 

Sales from e-commerce amounts to PHP5.3 billion in 2014

E-commerce sales amounted to PHP5.3 billion in 2014.  Only two industries recorded e-commerce transactions and these were:

  • short term and other accommodation activities amounting to PHP5.2 billion (98.6%); and
  • restaurants and mobile food service activities with PHP72.8 million (1.4%)

Across regions, NCR recorded the highest e-commerce transactions with PHP4.3 billion or 80.9 percent, followed by MIMAROPA and Cental Visayas with e-commerce sales of PHP473.0 million and PHP211.1 million respectively.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Accomodation and Food Service Activities sector for establishments with total employment of 20 and over in the formal sector of the economy.

The 2014 ASPBI is one of the designated statistical activities of the 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 year 2014.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014..

Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC). 

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 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2014 ASPBI is 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

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 2014 LE shows that there are about 944,500 establishments in operation in the country for the year.  About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.

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 Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2014 ASPBI is 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)  refers to the organizational structure or role of the establishment in the organization.  

Legal Organization (LO)  refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment. 

Industrial Classification  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  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. 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.

Geographic Classification  is grouping of establishments 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 PSGC as of December 31, 2014 was used for the 2014 ASPBI.

Sampling Design

Selection of sample establishment for the 2014 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 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 an industry                      domain in each region 

where:

      s = denotes the non-certainty employment strata in TE of 20 and over        

      p = 1,2,...17 regions (geographic domains)

  Xspj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each regionin each region 

       j = 1,2,3,..., nsp establishments                                                 

  Wspj = weight of the jth establishment in 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 total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

where:

       c = denotes the certainty employment strata in TE of 20 and over        

       p = 1,2,...17 regions (geographic domains)

   Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each region 

       j = 1,2,3,..., mcp establishments                                                 

  mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within 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 region (geopraphic domain) was obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where dp denotes the industry domains in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates  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

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

Where:

  N = total number of establishments in employment stratum in TE 1-9 or TE 10-19 in the Sth industry domain 

  n' = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 Sth industry domain 

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

Where:

 Nsp = total number of establishments 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 of 20-99 for the selected industry domain within each geographic domain (region)

 

Response Rate

Field operations of the 2014 ASPBI were scheduled from April to July 2015.

Total response rate for Accomodation and Food Service Activities sector with TE of 20 and over was 84.4 percent (1,917 out of 2,272 establishments).  This include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, nine establishments 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, 2014.

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.  Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers 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 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.

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.

Value Added is gross output less intermediate input. Gross output for accomodation and food service activities is the sum of the total income (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 expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; expense of industrial services done by others; expense of non-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 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 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.

  

 

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