Majority of establishments are engaged in gambling and betting activities
Preliminary results of the 2015 Annual Survey of Philippine Business and Industry showed that a total of 266 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Arts, Entertainment and Recreation sector.
By industry, gambling and betting activities garnered the highest number of establishments at 102(38.3%). Other amusement and recreation activities ranked second with 80 establishments (30.1%) while sports activities ranked third with 53 or 19.9 percent. Figure 1 illustrates the percentage distribution of Arts, Entertainment and Recreation sector establishments with TE 20 and over in 2015.
By geographic location, the National Capital Region (NCR) had the most number of establishments with 89(33.5%). CALABARZON and Central Luzon followed with 53(19.9%) and 37(13.9%) establishments, respectively.
Gambling and betting activities posts the highest employment in 2015
A total of 44,780 workers were employed by the sector in 2015. Of the total employment, 44,266 or 98.9 percent were paid employees while the remaining 1.1 percent were working owners and unpaid workers.
Among industries, gambling and betting activities, having the largest share in terms of number of establishments, had the most number of workers with 33,559 or 74.9 percent. Other amusement and recreation activities industry garnered the second highest number of 4,985 or 11.1 percent. The least number of workers were those engaged in libraries, archives, museums and other cultural activities with 683 or 1.5 percent. Figure 2 shows the distribution of employment of the sector with TE 20 and over in 2015.
Regionwise, NCR was the top employer of the sector with 27,836(62.2%) workers. CALABARZON ranked second with 4,817(10.8%) and Central Luzon placed third with 3,835(8.6%).
Employees in gambling and betting activities earn the largest in 2015
The total compensation paid by the sector amounted to PHP22.9 billion, an equivalent of PHP517,663 average annual compensation per employee.
By industry group, gambling and betting activities paid the highest compensation to its employees amounting to PHP20.5 billion or 89.6 percent. Sports activities and other amusement and recreational activities industries followed with PHP1.0 billion (4.5%) and PHP882.3 million (3.9%), respectively. The least annual compensation was paid by creative, arts and entertainment activities with PHP222.2 million (1.0%).
At the regional level, labor payments amounting to PHP18.3 billion or 79.9 percent was paid by establishments in NCR. Employers in CALABARZON disbursed PHP1.4 billion (6.2%) to its employees while Central Luzon paid PHP1.1 billion (4.9%).
Employees engaged in gambling and betting activities were the highest earners in 2015 with an average annual compensation of PHP615.4 thousand per employee, followed by libraries, archives, museums and other cultural activities employees with PHP367.9 thousand. The least paid were employees of establishment of other amusement and recreation activities, PHP184.2 thousand. Figure 3 shows the average annual compensation for the sector for establishments with TE of 20 and over by industry group in 2015.
By region, employees from NCR received the highest average annual compensation of PHP664.0 thousand per employee, followed by Negros Island Region with PHP441.6 thousand per employee. Central Visayas ranked third with an average annual compensation of PHP356.2 thousand.
Total income amounts to PHP145.6 billion in 2015; gambling and betting activities produce the largest
Total income earned by the sector in 2015 reached PHP145.6 billion.
Gambling and betting activities was the highest generating industry with an income of PHP135.5 billion or 93.1 percent of the total. Other industries of the sector with their corresponding incomes during the survey year were as follows:
- Sports activities, PHP4.1 billion
- Other amusement and recreation activities, PHP3.8 billion
- Libraries, archives, museums and other cultural activities, PHP1.3 billion
- Creative, arts and entertainment activities, PHP861.6 million
Establishments in NCR had generated a total income amounting to PHP116.5 billion (80.0%) while Central Luzon followed next with PHP9.2 billion or 6.3 percent. Completing the top three income generating regions was CALABARZON with PHP7.1 billion or 4.9 percent of the total income.
Total expense reach PHP128.3 billion in 2015
Establishments with TE 20 and over had spent a total of PHP128.3 billion during their operation in 2015..
Gambling and betting activities incurred the highest expense of PHP118.2 billion accounting for 92.1 percent of the total expense. Other industries and their corresponding expense incurred were the following:
- Sports activities, PHP4.6 billion
- Other amusement and recreation activities, PHP3.4 billion
- Libraries, archives, museums and other cultural activities, PHP1.2 billion
- Creative, arts and entertainment activities, PHP1.0 billion
Figure 4 shows the distribution of income and expense for the sector with total employment of 20 and over by industry group in 2015.
Across regions, establishments located in NCR spent the bulk of total expense of PHP106.5 billion 83.0 percent. Central Luzon and CALABARZON followed with PHP7.0 billion (5.5%) and PHP6.6 billion (5.1%), respectively.
Income-expense ratio stands at 1.13
Income-expense ratio is the income generated per peso spent. Meaning, for every peso spent, PHP1.13 income was generated.
Among industries, gambling and betting activities, recorded the highest ratio of 1.15, followed by libraries, archives, museums and other cultural activities with 1.14. Other amusement and recreation activities ranked third with an income-expense ratio of 1.11.
Value added amounts to PHP69.2 billion in 2015
Value added of the sector for establishments with TE of 20 and over was estimated at PHP69.2 billion.
Gambling and betting activities contributed PHP64.5 billion or 93.3 percent of the total value added for the sector. Sports activities placed second with PHP2.0 billion or 2.8 percent while other amusement and recreation activities followed with PHP1.7 billion or 2.5 percent. The least value added was accounted by creative, arts and entertainment activities with PHP290.8 million (0.4%).
At the regional level, National Capital Region recorded the highest value added of 78.7 percent of the total or PHP54.4 billion, followed by Central Visayas with PHP3.6 billion (5.3%) and Central Luzon with PHP3.6 billion (5.2%).
Labor productivity of the sector is PHP1.5 million per worker
Value added per total employment, a measure of labor productivity, was valued at PHP1.5 million for establishments with TE of 20 and over.
Among industries, gambling and betting activities industries had the highest labor productivity of PHP1.9 million per worker, followed by libraries, archives, museums and other cultural activities with PHP1.0 million. The least labor productive industry was recorded by creative, arts and entertainment activities, with PHP288.5 thousand.
Regionwise, workers in NCR were the most productive with PHP2.0 million value added per worker while Central Visayas workers were second place with PHP1.5 million. Figure 5 displays the labor productivity of the sector with TE of 20 and over by industry group in 2015.
Gross additions to fixed assets totals to PHP13.7 billion
Gross additions to fixed assets acquired by the sector during the year totaled to PHP13.7 billion.
Gambling and betting activities industry acquired the highest gross additions to tangible fixed assets amounting to PHP12.1 billion (88.4%). Sports activities ranked second with PHP1.3 billion (9.4%), while the least acquisition of fixed assets was recorded by creative, arts and entertainment activities with PHP31.9 million (0.2%).
Across the country, NCR led all regions in terms of gross additions to tangible fixed assets estimated at PHP12.2 billion or 88.8 percent share to total. Other regions that acquired more than PHP100.0 million addition to their fixed assets were the following;
- Western Visayas, PHP736.6 million
- Central Luzon, PHP326.4 million
- Cagayan Valley, PHP280.6 million
- CALABARZON, PHP159.9 million
Total change in inventories stands at PHP160.7 million
Change in inventories which defined as the value of ending inventory less beginning inventory amounted to PHP160.7 million in 2015.
Among industries, gambling and betting activities industry recorded the highest change in inventories of PHP 157.3 million (97.9%), while sports activities came second with PHP16.0 million (9.9%).
NCR recorded the highest change in inventories of PHP194.5 million.
Total subsidies received amounts to PHP250.2 million
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid or develop an industry. Subsidy granted to the sector reached PHP250.2 million during their operation in 2015
The government granted subsidy to three industries in Arts, Entertainment and Recreation sector. Creative, arts and entertainment activities industry was granted 85.4 percent of the total subsidy amounting to PHP213.6 million. Gambling and betting activities was given a subsidy of PHP33.5 million (13.4%) and libraries, archives, museums and other cultural activities had a share of 1.2 percent or PHP3.1 million.
Only three regions received subsidies from the government and these were the following:
- National Capital Region, PHP213.6 million
- Central Luzon, PHP33.5 million
- Davao, PHP3.1 million
Sales from e-commerce post PHP22.4 million
E-commerce refers to the selling of products or services over electronic system.
Only other amusement and recreation activities industry recorded E-commerce transaction of PHP22.4 million and transaction were reported in CALABARZON and Central Visayas with PHP20.6 million and PHP1.9 million respectively.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Arts, Entertainment and Recreation 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 will 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 at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC)..
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.
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 2015 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 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 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 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)
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 Arts, Entertainment and Recreation sector for establishments with TE of 20 and over was 96.1 percent (220 out of 229 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, five 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 defined 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.
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.
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.
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.
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.