Restaurants and mobile food service activities industry posts the highest number of establishments
The preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 5,492 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Accommodation and Food Service Activities sector.
Restaurants and mobile food service activities led the sector with 3,942 establishments accounting for 71.8 percent of the total number of establishments. This was followed by short term accommodation activities with 1,210 establishments (22.0%). Beverage serving activities and event catering and other food service activities with 261 establishments (4.8%) and 79 establishments (1.4%), respectively.
Figure 1 displays the percentage distribution of Accommodation and Food Service Activities sector with TE of 20 and over by industry group in 2015.
Among regions, National Capital Region (NCR) had the most number of establishments with 2,300 establishments or 41.9 percent of the total. Far behind on the second spot was CALABARZON with 666 establishments or 12.1 percent. Completing the top three was Central Luzon with 566 (10.3%).
Restaurants and mobile food service activities employ the highest number of workers
Total employment generated by the sector reached 268,655 in 2015. About 267,381 workers (99.5%) of the total workers were paid employees and 1,274 workers (0.5%) were working owners or unpaid workers.
Among the industry groups, the leading industry as to employment generation was restaurants and mobile food service activities with 181,152 or 67.4 percent of the total. Short term accommodation activities establishment and beverage serving activities establishments employed 76,636 (28.5%) and 6,596 (2.5%) employees, respectively.
Figure 2 shows the distribution of employment for the sector by industry group in 2015.
At the regional level, NCR was the top employer with nearly 130 thousand employees. This was followed by CALABARZON and Central Luzon with 25.9 thousand employees (9.6%) and 24.4 thousand (9.1%) employees, respectively.
The average number of workers per establishment for the sector was recorded at 49. Among industries, short term accommodation activities posted the highest average with 63 workers, followed by event catering and other food service activities with 54 workers.
Event catering and other food service activities pay the highest average annual compensation
Total compensation paid by the sector reached to PHP45.6 billion in 2015, or an equivalent to an average annual compensation of PHP170.5 thousand per employee.
By industry group, restaurants and mobile food service activities paid the highest compensation to its employees amounting to PHP28.9 billion or 63.4 percent of the total. This was followed by short term accommodation activities with PHP15.1 billion (33.1%) and event catering and other food service activities with PHP944.8 million (2.1%). On the other hand, beverage serving activities recorded the least with PHP685.5 million or 1.5 percent.
Event catering and other food service activities pay the highest average annual compensation of PHP222,959 per employee. Other industries raging an annual average compensation of more than a hundred thousand are:
- Short term accommodation activities, PHP198,140 per employee
- Restaurants and mobile food service activities, PHP159,771 per employee
- Beverage serving activities, PHP108,681 per employee
Figure 3 shows the average annual compensation of employees for the sector by industry group in 2015.
Region wise, NCR paid the highest average annual compensation of PHP209,381 per employee. Central Visayas and Central Luzon followed with PHP192,498 and PHP150,918, respectively. On the other hand, ARMM paid the lowest average annual compensation of PHP69,751 per employee.
Restaurants and mobile food service activities contributes the major share in income and expense
Income earned by the sector reached PHP332.0 billion in 2015.
Restaurants and mobile food service activities was the top contributor with total income of PHP240.8 billion or 72.5 percent of the total. Ranked second is short term accommodation activities with income valued at PHP80.9 billion (24.4%). Event catering and other food service activities had the least share of 1.7 percent or PHP5.7 billion.
Among regions, NCR generated more than half of the total income with PHP202.7 billion (61.0%). Three regions contributed with more than PHP20.0 billion each in total income and these are as follows:
- Region III (Central Luzon), PHP26.9 billion
- Region IVA ( CALABARZON), PHP24.9 billion
- Region VII (Central Visayas), PHP24.0 billion
Total expense including compensation incurred by the sector to operate amounted to PHP279.5 billion in 2015.
By industry, restaurant and mobile food service activities being the major contributor in income for the sector had the biggest share in expense with PHP199.0 billion or 71.2 percent. Short term accommodation activities spent a total of PHP71.8 billion or 25.7 percent. The remaining PHP8.7 billion (3.1%) were distributed to event catering and other food service activities and beverage serving activities.
Figure 4 shows the distribution of income and expense for Accommodation and Food Service Activities sector by industry group in 2015.
At the regional level, the top three regions in income were also the top regions in terms of expense. NCR incurred highest expense amounting to PHP168.3 billion or 60.2 percent of the total. Other regions with more than five percent share in total expense are as follows:
- Region III (Central Luzon), 8.1 percent,
- Region VII (Central Visayas), 7.6 percent
- Region IVA (CALABARZON), 7.5 percent.
Income-expense ratio posts to 1.19; event catering and other food service activities generates the highest returns
Income-expense ratio, the income generated per peso expense stood at 1.19. This means that for every peso spent, a corresponding income of PHP1.19 was generated.
By industry group, event catering and other food service activities recorded the highest returns with 1.28, followed by restaurants and mobile food service activities with 1.21 income per peso expense. Ranked third was short term accommodation activities with a ratio of 1.13. The lowest ratio was recorded by beverage serving activities with 1.10 income per expense.
Value added amounts to PHP123.7 billion in 2015
Value added generated by establishments with TE of 20 and over in 2015 was estimated at PHP123.7 billion.
Restaurants and mobile food service activities registered the highest value added of PHP83.2 billion or 67.3 percent of the total. Short term accommodation activities followed next with PHP36.7 billion (29.7%). Establishments engaged in event catering and other food service activities and beverage serving activities had a combined value added of PHP3.8 billion or 3.0 percent.
At the regional level, NCR recorded the highest share to value added of 62.4 percent of the total or PHP77.2 billion, followed by Central Luzon with 7.8 percent (PHP9.7 billion) and Central Visayas with 7.6 percent (PHP9.3 billion).
Most productive are employees of event catering and other food service activities
Labor productivity (value added per total employment) for Accommodation and Food Service Activities sector stood at PHP460 thousand per worker.
Workers in establishments under event catering and other food service activities industry were the most productive with PHP553 thousand per worker. The least productive were employees of beverage serving activities at PHP211 thousand per worker.
Figure 5 displays the labor productivity for the sector by industry group in 2015.
Among regions, the most productive was NCR generating PHP594.4 thousand value added per worker. Central Visayas followed with PHP460.5 value added per worker and Central Luzon placed third with PHP397.1 thousand value added per worker.
Gross addition to tangible fixed assets accumulates to PHP23.5 billion
Gross addition to tangible fixed assets acquired by the sector in 2015 amounted to PHP23.5 billion.
Among industries, establishment engaged in restaurant and mobile food service activities recorded the highest with PHP16.4 billion or 69.7 percent. Short term accommodation activities followed with PHP7.0 billion or 29.9 percent. The remaining PHP97.4 million was distributed to event catering and other food service and beverage serving activities.
Across regions, NCR acquired the highest gross addition to tangible fixed assets of PHP18.7 billion or 79.7 percent of the total . CALABARZON acquired a total of PHP989.9 million (4.2%). Completing the top three was Central Visayas with PHP797.1 million or 3.4 percent.
Total change in inventories reaches to PHP1.1 billion
Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP1.1 billion in 2015.
Restaurants and mobile food service activities recorded the highest change in inventories with PHP778.7 million or 72.7 percent, short term accommodation activities had PHP222.5 million or 20.8 percent, followed by event catering and other food service activities with PHP51.7 million or 4.8 percent.
The top three regions in terms of change in inventories were all located in Luzon. NCR recorded the highest with PHP425.0 million or 39.7 percent, followed by Central Luzon and CALABARZON with a total change in inventories of PHP181.9 million and PHP88.0 million, respectively.
Sales from e-commerce totals to PHP4.9 billion in 2015
E-commerce sales for establishments with TE of 20 and over amounted to PHP4.9 billion in 2015.
Almost all e-commerce sales came from short term accommodation activities with PHP4.8 billion or 98.4 percent and most of these establishments were located in NCR.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Accommodation and Food Service Activities sector for establishments with total employment of 20 and over.
The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2015.
The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level..
The conduct of the 2015 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 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
- 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 and 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)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnerships
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorship with branches
Hence, the 2015 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).
Frame of Establishments
The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2015 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, legal organization, industrial classification, employment size and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
Industrial Classification of an economic unit was 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 of an establishment 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 refers to the 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, 2015 was used for the 2015 ASPBI.
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.
For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.
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 A,C,E,F,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
s = denotes the non-certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-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 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 (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over 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'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the 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 industry domain within each geographic domain (region)
Response rate for Accommodation and Food Service Activities sector for establishments with TE of 20 and over was 93.3 percent (926 out of 992 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.
Limitation of Data
Only the formal sector was covered in the survey.
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.
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in for the establishment as of November 15, 2015.
Paid employees are all persons working in 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 leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as 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 refers to 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.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
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 inventories iis equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
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.