2014 Annual Survey of Philippine Business and Industry (ASPBI) - Accomodation and Food Service Activities : Final Results

Reference Number: 

2016-045

Release Date: 

Tuesday, February 21, 2017

Restaurants and mobile food service activities register the highest number of establishments

Based on the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI), the Philippines had a total of 28,059 establishments engaged in accommodation and food service activities. Of the total figure, 22,565 establishments or 80.4 percent were accounted to establishments with total employment (TE) of less than 20, while 5,494 or 19.6% were for TE of 20 and over.

Restaurants and mobile food service activities registered the highest total number of establishments accounting for 76.4 percent (21,443).  Short term accommodation activities had a total of 3,262 (11.6%) establishments.  Beverage serving activities followed with 2,572 (9.2%) establishments.  Beverage serving activities ranked third with a share of 9.2 percent or 2,572 establishments.  Figure 1 shows the percentage distribution of establishments by industry group in 2014.

 

Restaurants and mobile food service activities post the largest employment

The total number of employed persons of the sector reached 416,942 in 2014.  Of the total, 406,136 or 97.4 percent were paid employees while the remaining 10,806 or 2.6 percent were working owners or unpaid workers.  More than half (56.5%) of the total employees worked for establishments with TE of 20 and over and the remaining 43.5 percent worked for establishments with TE of less than 20.

The leading industry as to employment generation was restaurants and mobile food service activities with 290.5 thousand workers or 69.7 percent of the total. Short term accommodation activities employed 90.8 thousand employees or 21.8 percent share.  Beverage serving activities had 26.8 thousand or 6.4 percent and the least number of employees was accounted for by other accommodation with 1.0 thousand or 0.2 percent.  Figure 2 shows the distribution of employment by industry group.

 

Total compensation amounts to PHP51.5 billion

Total compensation paid by the sector amounted to PHP51.5 billion in 2014.  The average annual remuneration per employee amounted to PHP126.8 thousand.  For establishments with TE of 20 and over, the total compensation reached PHP35.1 billion or amounting to an average annual compensation of PHP150.7 thousand per employee, while establishments with TE of less than 20 paid only PHP 16.4 billion or PHP94.8 thousand per employee.

The large portion of compensation was paid by restaurants and mobile food service activities amounting to PHP32.8 billion or 63.7 percent of the total, followed by short term accommodation activities with PHP15.0 billion (29.2%) and beverage serving activities with PHP2.8 billion.  On the other hand, other accommodation recorded the least with PHP103.7 million or 0.2 percent.  Figure 3 shows the distribution of compensation paid for the employees of the sector.

 

In terms of annual compensation, highest earners were employed in short term accommodation activities with an average of PHP170.6 thousand per employee. Other accommodation paid an average annual remuneration of PHP117.2 thousand to its employees. This was closely followed by workers in restaurants and mobile food service activities with PHP115.5 thousand. The lowest earners among industries were employees from the event catering and other food service activities with only PHP102.7 thousand average annual compensation.

Restaurants and mobile food service activities generates the largest share in income and expense

Total income generated by the sector in 2014 reached PHP397.1 billion. By employment size, those establishments with TE of 20 and over reached a total income of PHP264.0 billion or 66.5 percent, the remaining PHP133.2 billion (33.5%) was generated by establishments with TE of less than 20.

Restaurants and mobile food service activities reported the largest receipt of PHP288.3 billion or 72.6 percent of the total income. With income valued at PHP84.2 billion or 21.2 percent of the total, those establishments engaged in short term accommodation activities ranked second. Beverage serving activities had a share of PHP18.1 billion or 4.6 percent. The lowest income was generated by other accommodation with PHP460.4 million or 0.1 percent.

Total expense incurred by accommodation and food service activities sector was estimated at PHP342.6 billion. Major portion of the total expense was accounted to restaurant and mobile food service activities, sharing 73.6 percent or PHP252.1 billion of the total expense. Short term accommodation activities spent a total of PHP69.3 billion or 20.2 percent. Beverage serving activities disbursed a total expense of PHP16.4 billion or 4.8 percent, while other accommodation spent the lowest with PHP439.2 million or just 0.1 percent of the total expense. Figure 4 shows the distribution of income and expense by industry group.

 

Income-expense ratio posts to 1.16; event catering and other food service activities generates the highest returns

Income-expense ratio, the income generated per peso expense, stood at 1.16. By industry group, event catering and other food service activities recorded the highest return with 1.38, followed by short term accommodation activities with 1.21 income per peso expense. Ranked third was restaurants and mobile food service activities with 1.14 income per peso expense. The lowest ratio was recorded by other accommodation with 1.05 income per expense.

Value added values to PHP135.2 billion in 2014

Value added generated by the sector was estimated at PHP135.2 billion. For establishments with TE of 20 and over, value added was PHP 93.8 billion or 69.3 percent of the total. The remaining PHP41.5 billion (30.7%) value added was generated by establishments with TE of less than 20.

Restaurants and mobile food service activities registered the highest value added of PHP84.9 billion or 62.7 percent of the total. Short term accommodation activities followed next with PHP41.9 billion (31.0%). Establishments engaged in beverage serving activities ranked third with PHP5.5 billion or 4.1 percent. Other accommodation had the least share to total value added with PHP242.2 million or 0.2 percent. Figure 5 shows distribution of value added for the sector by industry group.

 

Most productive are employees of short term accommodation activities

Labor productivity (value added per total employment) for accommodation and food service activities stood at PHP333.0 thousand per worker. By industries, short term accommodation activities had the highest value added per worker of PHP475.3 thousand. Establishments engaged in event catering and other food service activities ranked second with PHP362.1. Restaurant and mobile food service activities had PHP298.8 thousand while the least was recorded by employees of beverage serving activities at PHP215.3 thousand.

Gross addition to tangible fixed assets for the sector reaches to PHP13.5 billion

Gross addition to tangible fixed assets acquired by the sector in 2014 amounted to PHP13.5 billion. Establishments with TE of 20 and over reached PHP 10.2 billion while those establishments with TE of less than 20 acquired a total fixed assets amounting to PHP3.2 billion.

Among industries, establishment engaged in short term accommodation activities recorded the highest with PHP7.2 billion or 53.1 percent. Restaurant and mobile food service activities had PHP5.7 billion or 42.0 percent. The remaining 4.9 percent was accounted for by beverage serving activities, other accommodation and event catering and other food service activities.

Total change in inventories amounts to PHP2.2 billion

Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP2.2 billion in 2014.

Restaurants and mobile food service activities recorded the highest change in inventories with PHP1.7 billion or 77.6 percent, short term accommodation activities had PHP334.4 million or 15.1 percent, followed by beverage serving activities with PHP154.4 million.

Sales from e-commerce totals to PHP4.0 billion in 2014

E-commerce sales amounted to PHP4.0 billion in 2014. Three industries recorded e-commerce transactions and these were:

  • short term accommodation activities, PHP3.7 billion (91.6%)
  • restaurants and mobile food service activities, PHP307.6 million (7.7%)
  • event catering and other food service activities, PHP29.8 million (0.7%)

 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Accommodation and Food Service Activities sector for all establishments 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-questionaire and submission thru email.

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 2014 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 2014 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).  This refers to the organizational structure or role of the establishment in the organization.  

Legal Organization (LO).  This refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment.  The following are the types of legal organization: 

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 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. 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 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:

  •    = 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 
  •  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

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 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

where:

  •  c    = 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 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

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 2014 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

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

Total response rate for Accommodation and Food Service Activities sector was 85.4 percent (4,492 out of 5,262 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 29 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 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.

Value Added is gross output less intermediate input. Gross output for accommodation 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; industrial services done by others; non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts 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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