2015 Annual Survey of Philippine Business and Industry (ASPBI) - Arts, Entertainment and Recreation Sector For All Establishments: Final Results

Reference Number: 

2017-337

Release Date: 

Friday, December 29, 2017

Gambling and betting activiites leads the sector in terms of number of establishments

The final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 3,004 establishments in the formal sector of the economy were engaged in Arts, Entertainment and Recreation activities.

Among industries, gambling and betting activities recorded the highest number of establishments with 1,179, accounting for 39.2 percent of the total number of establishments.  Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc ranked second with 573 establishments or 19.1 percent. Other amusement and recreation activities, n.e.c. came in third with 508 establishments or 16.9 percent. Figure 1 illustrates the percentage distribution of establishments for the sector by industry sub-class in 2015.

Gambling and betting activities generate the highest employment in 2015

Total employment generated by the sector in 2015 was recorded at 62,374 workers. Paid employees constituted 60,766 or 97.4 percent and the remaining 1,608 or 2.6 percent were working owners and unpaid workers.

Among industries, gambling and betting activities had the largest number of workers with 36,110 or 57.9 percent of the total. Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs, etc. placed second with 8,217 workers or 13.2 percent. Other amusement and recreational activities, n.e.c. followed with 5,004 workers or 8.0 percent. Figure 2 shows the distribution of employment for the sector by industry sub-class in 2015.

The recorded average number of workers per establishment for the sector was 21 employees. Five industries of the sector surpassed the national in 2015 and these were as follows:

  •  Operation of concert and theatre halls and other arts facilities, 40 workers per establishment
  •  Activities of sports clubs, 38 workers per establishment
  •  Botanical and zoological gardens and nature reserves activities and gambling and betting activities, each with 31 workers per establishment
  •  Other sports activities, 22 workers per establishment

Library and archives activities pays the highest average annual compensation

In 2015, the sector paid a total compensation of PHP24.8 billion, translating to an average annual compensation of PHP408.2 thousand per employee.

By industry sub-class, gambling and betting activities paid the highest compensation of PHP20.9 billion or 84.2 percent of the total. Activities of sports clubs placed second with PHP1.1 billion or 4.5 percent. Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs, etc. came in third with PHP582.8 million or 2.3 percent.

Establishments under library and archives activities paid the highest average annual compensation of PHP662.8 thousand per employee. This was followed by museum activities and preservation of historical sites and buildings with PHP638.6 thousand per employee and gambling and betting activities with PHP583.2 thousand per employee, respectively. Figure 3 displays the average annual compensation per employee of the five leading industries of the sector in 2015.

Gambling and betting activities contribute the major share in income and expense

Total income generated by the sector in 2015 amounted to PHP158.9 billion. The lone industry which generated more than a hundred billion pesos worth of income was gambling and betting activities with PHP140.4 billion or 88.3 percent of the total.

Other industries with more than one billion pesos each in total income were the following:

  •  Activities of sports clubs, PHP4.2 billion
  •  Other amusement and recreation activities, n.e.c., PHP3.2 billion
  •  Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., PHP2.6 billion
  •  Activities of amusement parks and theme parks, PHP2.2 billion
  •  Operation of concert and theatre halls and other arts facilities, PHP1.1 billion

Total expense for the sector amounted to PHP133.3 billion in 2015. Across industries, gambling and betting activities incurred more than three-fourths (87.1%) of the total expense with PHP116.1 billion. This was followed by activities of sports clubs with PHP4.7 billion (3.5%), and other amusement and recreation activities, n.e.c. with PHP2.8 billion (2.1%). Other industries which spent more than PHP1.0 billion pesos worth of shares of expense were: operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., PHP2.2 billion; activities of amusement parks and theme parks, PHP1.8 billion; operation of sports facilities, PHP1.7 billion and operation of concert and theatre halls and other arts facilities, PHP1.3 billion. Figure 4 presents the five leading industries in terms of income and expense of the sector in 2015.

Income-expense ratio stands at 1.19

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.

Among industries, library and archives activities, recorded the highest income-expense ratio with 1.43. Other industries that yielded greater than the national average income per expense ratio were the following:

  • Concerts and opera or dance production, 1.24
  • Activities of amusement parks and theme parks, 1.24
  • Operation of sports facilities, 1.22
  • Gambling and betting activities, 1.21
  • Operation of recreation parks, beaches, including renting of facilities such as bathouses, lockers, chairs etc., 1.20

Gambling and betting activities generate the highest value added in 2015

Value added generated by the sector was estimated at PHP81.4 billion in 2015.

Gambling and betting activities registered the highest value added of PHP72.7 billion or 89.4 percent of the total. Activities of sports clubs recorded PHP2.2 billion or 2.7 percent, while, operation of sports facilities produced worth PHP1.4 billion or 1.7 percent share. The least value added was accounted for individual artist activities with PHP7.5 million or 0.01 percent of the total.

Most productive are employees of gambling and betting activities

Labor productivity (value added per total employment), for the sector stood at PHP1.3 million per worker in 2015.

Gambling and betting activities was the most labor productive among industries with PHP2,014.5 thousand per worker. Library and archives activities followed closely with PHP1,934.0 thousand while museum activities and preservation of historical sites and buildings came next with a labor productivity of PHP1,633.4 thousand per worker. Figure 5 presents the top five industries as to labor productivity in 2015.

Gross additions to fixed assets reaches PHP16.6 billion

In 2015, gross additions to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector was valued at PHP16.6 billion.

Almost three-fourths or 73.4 percent of the total gross additions to fixed assets was acquired by gambling and betting activities with PHP12.2 billion. Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc. and activities of sports clubs acquired PHP2.7 billion and PHP1.0 billion worth of gross addition to fixed assets respectively.

Total change in inventory aggregates PHP171.2 million

Change in inventories, defined as the value of ending less beginning inventory, was valued at PHP171.2 million in 2015.

The top three industries that registered positive change in inventories were; gambling and betting activities with PHP158.7 million or 92.7 percent, activities of sports clubs with 15.0 million or 8.8 percent, other creative, arts and entertainment activities n.e.c. with PHP5.2 million or 3.0 percent.

Subsidies amount to PHP308.9 million in 2015

Subsidies received from the government by the sector in 2015 reached PHP308.9 million. Among industries operation of concert and theatre halls and other arts facilities received the largest subsidy from the government amounting to PHP213.6 million (69.2%). This was distantly followed by other sports activities and gambling and betting activities with PHP54.4 million (17.6%) and PHP33.5 million (10.8%) respectively. On the other hand, operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc.; industry received the least amount of subsidies worth PHP1.3 million (0.4%).

Sales from e-commerce post PHP2.4 billion in 2015

E-commerce sales generated by the sector was PHP2.4 billion in 2015. The two industries that reported e-commerce transaction during the year were gambling and betting activities and operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc. which reported e-commerce transaction of 2.4 billion and 22.4 million, respectively.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for all Arts, Entertainment and Recreation (Sector R) establishments.

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 2015 Survey of Information and Communications Technology (SICT) was undertaken as a rider to this survey.

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 at the national sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC)..

Legal Authority

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 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 under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed 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.

Methodology

Sampling Design

Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

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

 j      =  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 characteristicfor 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.

 

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 

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 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 with TE of 20 to 49 and TE 50 to 99 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

where:

       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

Where:

 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

Response rate for all Arts, Entertainment and Recreation sector was 92.0 percent (355 out of 386 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 08 establishments responded online.

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 as 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 Arts, Entertainment and Recreation sector is the sum of 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 inventory. 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 (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts; and other expense.

Gross additions to tangible fixed assets  is equal to capital expenditures less sale of fixed assets, including land.

Change in inventories is 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.
 

 


 

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