2014 Annual Survey of Philippine Business and Industry (ASPBI) - Arts, Entertainment and Recreation Sector for Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2017-046

Release Date: 

Friday, February 24, 2017

Majority of establishments are engaged in gambling and betting activities

Preliminary results of the 2014 Annual Survey of Philippine Business and Industry showed that a total of 284 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in arts, entertainment and recreation activities.  As shown in Figure 1, gambling and betting activities garnered the highest number of establishments at 108 (38.0%).  Other amusement and recreation activities ranked second with 82 establishments (28.9%).  On the other hand, libraries, archives, museums and other cultural activities recorded the lowest number of establishments with 11 (3.9%).

 

By geographic location, National Capital Region (NCR) had the most number of establishments engaged in arts, entertainment and recreation sector with 85 (29.9%).  CALABARZON and MIMAROPA had combined number of 58 (20.4%) establishments.  Central Luzon ranked third with 43 (15.1%) establishments.

Gambling and betting activities posts the highest employment in 2014

A total of 37,557 workers were employed by the sector in 2014.  Of the total employment, 37,054 or 98.7 percent were paid employees while the remaining 503 or 1.3 percent were working owners and unpaid workers.

Figure 2 shows that gambling and betting activities having the largest share in terms of number of establishments, had the most number of workers with 25,308 (67.4%).  Other amusement and recreation activities industry garnered the second highest number of 5,686 (15.1%).  The least number of workers were engaged in libraries, archives, museums and other cultural activities with 634 (1.7%).

 

Regionwise, NCR was the top employer of the sector with 19,344 (51.5%) workers.  Combined regions of CALABARZON and MIMAROPA ranked second with 5,447 (14.5%), and Central Luzon placed third with 4,153 (11.1%).

Employees in gambling and betting activities earn the largest in 2014

The total compensation paid by the sector amounted to PHP14.5 billion, an equivalent of PHP391,957 average annual compensation per employee.

By industry group, gambling and betting activities paid the highest compensation to its employees amounting to PHP12.5 billion or 85.8 percent.  Sports activities and other amusement and recreational activities industries followed with PHP898.0 million (6.2%) and PHP806.2 million (5.6%), respectively.  The least annual compensation was paid by libraries, archives, museums and other cultural activities with PHP127.0 million (0.9%).

Employees engaged in gambling and betting activities were the highest earners in 2014 with an average annual compensation of PHP496.7 thousand per employee.  Sports activities employees came in second with PHP201.8 thousand.  On the other hand, workers in other amusement and recreation activities received the lowest average annual remuneration of PHP142.6 thousand.

By region, employees from NCR received the highest average annual compensation of PHP496.2 thousand per employee, followed by Davao Region with PHP387.4 thousand.  Central Visayas ranked third with an average annual compensation of PHP367.0 thousand. Figure 3 shows the average annual compensation per employee by industry.

 

At the regional level, labor payments amounting to PHP9.6 billion or 66.0 percent was paid by establishments in NCR. Employers in CALABARZON and MIMAROPA had a combined disbursement of PHP1.4 billion (9.7%) to its workers while Central Luzon paid PHP1.2 billion (8.1%).

Total income amounts to PHP95.0 billion in 2014; gambling and betting activities produce the largest

Total income earned by the sector in 2014 reached PHP95.0 billion. Gambling and betting activities was the highest, generating an income of PHP86.1 billion or 90.7 percent.  Sports activities earned PHP3.9 billion (4.1%), while creative, arts and entertainment activities generated the least income with PHP727.4 million (0.8%).

Nearly three-fourths (72.0%) of the total income of the sector was generated by establishments in NCR amounting to PHP68.4 billion.  Combined regions of CALABARZON and MIMAROPA followed next with PHP7.0 billion or 7.3 percent.  Completing the top three regions was Central Luzon with PHP6.4 billion or 6.7 percent of the total income.

Total expense reaches PHP80.2 billion in 2014

Total operating expense summed up to PHP80.2 billion.  Gambling and betting activities incurred the highest expense of PHP71.5 billion (89.1%).  This was followed by sports activities with payments of PHP4.1 billion (5.0%).  Libraries, archives, museums and other cultural activities spent the least with PHP890.3 million (1.1%).

 

Across regions, establishments located in NCR spent the largest as it incurred PHP57.0 billion (71.0%) of the total expense.  CALABARZON combined with MIMAROPA and Central Visayas followed with PHP6.5 billion (8.1%) and PHP5.5 billion (6.8 %), respectively.

Income-expense ratio stands at 1.18

Income-expense ratio, the income generated per peso spent, amounted to 1.18, meaning, for every peso spent, PHP1.18 was generated.  Gambling and betting activities recorded the highest ratio of 1.20 followed by other amusement and recreation activities, 1.14.  Libraries, archives, museums and other cultural activities ranked third with an income-expense ratio of 1.07.

Value added amounts to PHP41.3 billion in 2014

Value added for the sector was estimated at PHP41.3 billion.  Gambling and betting activities contributed PHP37.4 billion or 90.7 percent of the total value added for the sector.  Sports activities placed second with PHP1.8 billion or 4.3 percent while other amusement and recreation activities followed with PHP1.5 billion or 3.6 percent.  The least value added was accounted by creative, arts and entertainment activities with PHP173.7 million (0.4%).

 

Employees of gambling and betting activities are the most labor productive

Value added per worker, a measure of labor productivity, was valued at PHP1.1 million.  Among industries, employees of gambling and betting activities industries had the highest average with PHP1.5 million, followed by libraries, archives, museums and other cultural activities with PHP630.2 thousand.  The least labor productive industry was recorded by creative, arts and entertainment activities, with PHP119.8 thousand.

Gross additions to fixed assets total PHP1.3 billion

Gross additions to fixed assets in 2014 totaled to PHP1.3 billion with the sports activities industry recording the highest amount at PHP881.6 million (66.2%).  Other amusement and recreation activities ranked second with PHP226.1 million (17.0%) while the least amount of gross additions to fixed assets was recorded by creative, arts and entertainment activities with PHP14.5 million (1.1%).

Total change in inventories stands at PHP209.1 million

Change in inventories, which is defined as the value of ending inventory less the beginning inventory, amounted to PHP209.1 million in 2014.  Among industries, gambling and betting activities industry recorded the highest change in inventories with PHP111.7 million (53.4%), while other amusement and recreation activities came second with PHP90.4 million (43.2%).  

Subsidies in 2014 amounts to PHP551.2 million

Subsidies received from the government in 2014 reached PHP551.2 million.  Gambling and betting activities was granted by the government the largest subsidy amounting to PHP288.8 million (52.4%) followed by creative, arts and entertainment activities with PHP260.9 million (47.3%).

Sales from e-commerce post PHP19.3 million

E-commerce refers to the selling of products or services over electronic system.  Only three industries recorded e-commerce transactions and these were the following:

  • Libraries, archives, museums and other cultural industries, PHP13.5 million
  • Other amusement and recreation activities, PHP3.7 million 
  • Sports activities with PHP2.1 million.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Arts, Entertainment and Recreation 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..

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2014 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website. .

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

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) 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 arts, entertainment and recreation activities sector with TE of 20 and over was 73.6 percent (178 out of 242 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, eight 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.

Value Added is gross output less intermediate cost.  Gross output 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.  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, payouts; 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 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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