2014 Survey of Tourism Establishments in the Philippines (STEP) - Economy Wide: Final Results

Reference Number: 

2017-208

Release Date: 

Friday, September 1, 2017

Food and beverage service activities dominates all tourism characteristic industries

Final results of the 2014 Survey of Tourism Establishments in the Philippines showed that there were a total of 39,325 establishments in the formal sector of the economy engaged in tourism characteristic activities.

Food and beverage service activities had the highest number of establishments among the industries of the tourism characteristic activities with 24,121 establishments or 61.3 percent of the total. This was followed by health and wellness industry with 7,234 establishments (18.4%). Establishments in accommodation numbered third with 3,279 establishments (8.4%). The least number of establishments was recorded by transport operators; tour and travel agencies with 1,532 establishments. Figure 1 shows the percentage distribution of all establishments by tourism characteristic industry in 2014.

 

 

Food and beverage service activities employ the highest workers

Workers hired by establishments for all major tourism industries totalled to 766,777 in 2014.

Across industries, food and beverage service activities employed 420,471 workers or about 54.8 percent of the total. Ranked second and third were health and wellness and accommodation industries, with 161,306 (21.0%) and 92,075 (12.0%) employees, respectively. On the other hand, transport operators; tours and travel agencies hired the least number of employees with 36,465, or 4.8 percent of the total workforce.

Seasonal workers were hired to augment the shortage of workers during tourism peak season from March to May by tourism characteristic industries. In 2014, a total of 32,827 seasonal workers were employed by tourism industries or about 4.3 percent of the total workers.

Among industries, food and beverage service activities employed 14,826 seasonal workers or 45.2 percent of the total. This was followed by accommodation industry with 12,372 (37.7%). Other tourism activities came in third with 3,488 seasonal workers (10.6%). Health and wellness hired 1,848 seasonal workers (5.6%). Transport operators; tour and travel agencies had the least recorded seasonal workers of only 292. Figure 2 shows the distribution of total employment and seasonal workers for all establishments by tourism characteristic industry.

 

 

Tourism characteristic industry generates PHP885.0 billion revenue

Gross revenue generated by tourism characteristic industry establishments reached PHP885.0 billion.

Industry wise, food and beverage service activities earned the bulk of the total revenue with PHP306.0 billion or 34.6 percent of the total. Transport operators; tour and travel agencies garnered income of PHP229.6 billion (26.0%). This was followed by health and wellness and other tourism activities industries with PHP142.9 billion and PHP122.3 billion, respectively. Accommodation industry posted the least income with just PHP84.2 billion or 9.5 percent.

Revenue generated from tourists in 2014 amounted to PHP497.3 billion, accounting for 56.2 percent of the total revenue for all establishments. Food and beverage service activities generated the largest share or 35.7 percent of the total revenue amounting to PHP177.7 billion. Health and wellness, on the other hand generated the smallest share amounting to PHP45.3 billion (9.1%). Figure 3 shows the distribution of total revenue and revenue generated from tourists for all establishments by tourism characteristics industry.

 

One in 10 establishments plans to expand; almost two in ten establishments plan to renovate

In 2014, a total of 4,486 establishments or 11.4 percent engaged in tourism characteristic industries had plans for expansion within the next five years while 6,323 establishments or 16.1 percent had plans to renovate within the next five years.

Sixty five percent of the total number of establishments which reported to have plans for expansion within the next five years were establishments engaged in food and beverage industry with 2,914 establishments. Other industries with plans for expansion were the following:

  • Health and wellness, 14.5 percent
  • Accommodation, 11.0 percent
  • Other tourism activities, 6.0 percent
  • Transport operators; tour and travel agencies, 4.0 percent.

In terms of renovation plan among tourism characteristic industries, the following had plans for the next five years:

  • Food and beverage service activities, 57.1 percent
  • Health and wellness, 18.9 percent
  • Accommodation, 12.7 percent;
  • Other tourism activities, 8.8 percent,
  • Transport operators; tour and travel agencies, 2.6 percent.

Figure 4 shows the percentage distribution of all establishments with expansion and renovation plans within the next five years.

 

Food and beverage service activities is the most DOT- accredited tourism industry

Out of the total number of 39,325 establishments under tourism characteristic industry, 9,361 establishments or 23.8 percent were accredited by the Department of Tourism (DOT).

More than half or 53.6 percent of the accredited establishments were food and beverage service activities. Accommodation industry got a 18.1 percent share of the total accreditation. The least share of accreditation of 7.6 percent was for transport operators; tour and travel agencies. Figure 5 shows the distribution of establishments with DOT accreditation.

 

 

There are at least two available facilities for every establishment

Different facilities were made available for tourists in 2014. Among them, restrooms/comfort rooms were the most common to tourism characteristic establishments with 42.2 percent. This means that for every 10 tourism characteristic establishment, four have restrooms/comfort rooms.

Most common available facilities by tourism characteristic industry according to the result of the survey were as follows:

  • Accommodation – 7 out of 10 establishments had parking space
  • Food and beverage service activities – 6 out of 10 establishments had rest rooms/comfort rooms
  • Transport operators; tour and travel agencies – 7 out of 10 establishments had online reservation
  • Health and wellness – 2 out of 10 establishments had wireless connection
  • Other tourism activities – 5 out of 10 had rest rooms/comfort rooms

Transport services were the most common available service among tourism characteristic industries accounting for 7.3 percent of the total number of establishments.

The following are the most common available services by industry:

  • Accommodation – 4 in every 10 had laundry and dry cleaning services
  • Food and beverage service activities – 1 in every 10 had transport services
  • Transport operators; tour and travel agencies – 5 in every 10 had transport services
  • Health and wellness – 9 in every 10 had medical services
  • Other tourism activities – 2 in every 10 had transport services

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2014 Survey of Tourism Establishments in the Philippines (STEP).

The 2014 STEP is the second survey round conducted and is a rider to the 2014 Annual Survey of Philippine Business and Industry (ASPBI). Data collected will provide information on the available supply of tourism goods, products and services which are valuable inputs in the compilation the Philippine Tourism Satellite Account (PTSA). This is a nationwide survey conducted by the Philippine Statistics Authority (PSA) in April 2015 with the year 2014 as a reference period.

Survey of establishments in the formal sector of the economy engaged in tourism characteristics industries only as defined by Philippine Tourism Statistical Classification System (PTCS). Tourism characteristic products are goods and services which would cease to exist in meaningful quantity or those for which the level of consumption would be significantly reduced in the absence of visitors (e.g. accommodation services). Activities from which the products were created are termed as tourism characteristic industries.

On the other hand, tourism connected products are goods and services that are affected significantly without tourism; or are important to tourism, independent of level of usage of the product by tourists. Similarly, activities from which the products were created are termed as tourism connected industries.

The conduct of 2014 STEP will generate statistics on the availability of supply from tourism industries that will meet the consumption of goods and services of visitors. The 2014 STEP will continuously serve as a source of data on tourism supply.

Objectives

The general objective of the 2014 STEP is to provide data on tourism characteristic establishments in the country. Specifically, the 2014 STEP aims to:

  • provide data on the supply and capacity in terms of facilities and services
  • gather data on employment by sex and nationality
  • gather data on revenue generated from tourist
  • provide information on indicators for future expansion and/or renovation plans

Legal Authority

The conduct of the 2014 STEP 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 STEP is a nationwide survey of establishments in the formal sector engaged in tourism characteristic industries. Tourism characteristic industries as defined in the IRTS 2008 (International Recommendation of Tourism Statistics) with grouping according to industry sub-class (5-digit) of the 2009 PSIC. (See Table 1)

It shall completely cover the following tourism characteristic industries:

  • Accommodation (I55 except I55901- Dormitories/boarding houses); and
  • Chartered buses and cars operation (e.g. tourist buses, rent-a-car) (H49204 and H49324).

The other tourism characteristic industries shall be taken on a sampling basis.

Tourism connected industries are excluded from the coverage of the 2014 STEP.

Unit of Enumeration

The unit of enumeration for the 2014 STEP were the establishments.  An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of economic 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 provides the legal basis for ownership of the establishment.

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.

Employment Size.  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. 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.  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, 2014 was used for the 2014STEP.

Frame

The frame for the 2014 STEP was extracted from the 2014 List of Establishments (LE). This frame was used to draw the sample establishments for the survey. The initial estimate of the 2014 LE shows that there are about 944,000 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 39,925 (15%) comprise the frame for the 2014 STEP.

Sampling Design

Selection of sample establishment for the 2014 STEP was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Questionnaire Design

Survey Forms

For the 2014 STEP, five types of questionnaire were used. The 2014 STEP questionnaires are shown in Table 2.

 

                                                 Data Items

                                                 The data items found in the STEP questionnaires are Listed in Table 3.

 

 

Response Rate

Total response rate as of 12 May 2017 for all establishments by tourism characteristic industry was 88.5 percent (6,380 out of 7,210 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 38 establishments responded online.

Table 4 shows the response rate by industry.

 

 

CONCEPTS AND DEFINITIONS OF TERMS

 

Accommodation services - includes Room Service, lodging inn or tourist inn. Room service is an accommodation available at many hotels where workers at the hotel bring food and other items to hotel rooms, by request of the guest and usually for extra charge.

Accreditation - a certification issued by the Department of Tourism (DOT) which recognizes the holder to having complied with its minimum standards in the operation of the establishment concerned.

Economic activity or business - is the activity of the establishment as classified under the 2009 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Electronic payment (e.g. credit card, ATM) - refers to money paid electronically. Also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency.

Employment - is the number of persons who worked in or for this establishment as of 15 November 2014.

Foreign exchange counter - is a business establishment whose customers exchange one currency for another.

Health and Wellness Tourism - refers to the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for health and wellness purpose not related to the exercise of an activity remunerated from within the place visited..

Package Tour - refers to a set of products and services offered to the visitors that is composed of varieties of tourism characteristic products (such as transport, accommodation, food services, recreation, etc.). The component of a package tour might be pre-established, or can result from an "a la carte" procedure where the visitor decides the combination of products/services he/she wishes to acquire. This can be synonymously used with "package travel and/or package holiday".

Revenue generated from tourists - refers to the percentage of total cash received and receivables for goods/products and by-products sold and services rendered generated from tourists.

Seasonal Workers - refer to individuals who were hired for a specific period of time to augment the regular employees due to high demand of clients and/or increased work demands during peak months.

Tour - refers to any arranged journey intended for purposes of tourism to one or more places and back to the point of origin. The arranged journey may not necessarily be pre-paid.

Tour packaging services - a package holiday or package tour consists of transport and accommodation advertised and sold together by a vendor known as a tour operator. Other services may be provided like a car rental, activities or outings during the holiday. Transport can be via charter airline to a foreign country. Package holidays are a form of product bundling. Package holidays are organized by a tour operator and sold to a consumer by a travel agent. Some travel agents are employees of tour operators, others are independent.

Tourism - refers to activities of foreign and domestic visitors traveling to and staying in places outside their usual environment for not more than one continuous year for leisure, business and other purposes not related to employment with pay from within the place visited. Traveling for the purpose of conducting businesses, for education and training, etc., can also be part of tourism. Both foreign visitors (country of residence is other than the Philippines) and domestic visitors (Philippine residents) are covered in the survey.

Tourism activities - encompass all that foreign and domestic visitors do for a trip or while on a trip. It is not restricted to what could be considered as “typical” tourism activities such as sightseeing, sunbathing, visiting site, etc. From an economic point of view, the basic activity of foreign and domestic visitors is consumption, that is, the acquisition of consumption goods and services to satisfy individual or collective needs and wants.

Tourism characteristic products - are goods and services which would cease to exist in meaningful quantity or those for which the level of consumption would be significantly reduced in the absence of visitors (e.g. accommodation services). Activities from which the products were created are termed as tourism characteristic industries.

Tourism connected products - are goods and services that are affected significantly without tourism; or are important to tourism, independent of level of usage of the product by tourists. Similarly, activities from which the products were created are termed as tourism connected industries.

Wireless internet connection (Wi-Fi) - is a trademark of the Wi-Fi Alliance. A Wi-Fi enabled device such as a personal computer, video game console, mobile phone, MP3 player or personal digital assistant can connect to the Internet when within range of a wireless network connected to the Internet. The coverage of one or more interconnected access points which is called a hotspot that can comprise an area as small as a few rooms or as large as many square miles covered by a group of access points with overlapping coverage.

 


 

 

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