2016 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: 

2018-237

Release Date: 

Thursday, August 30, 2018

Gambling and betting activities industry leads the sector in terms of number of establishments

Preliminary results of the 2016 Annual Survey of Philippine Business and Industry in Arts, Entertainment and Recreation sector numbered 286 establishments with total employment (TE) of 20 and over in the formal sector of the economy

As illustrated in Figure 1, gambling and betting activities led the sector with 103 establishments or 36.0 percent of the total number of establishments for the sector. Other amusement and recreation activities followed with 95 establishments (33.2%). Sports activities placed third with 55 establishments (19.2%).

By geographic location, the National Capital Region (NCR) had the most number of establishments with 88 (30.8%). CALABARZON and Central Luzon followed with 55 establishments (19.2%) and 41 establishments (14.3%), respectively.

Gambling and betting activities industry employs the biggest number of workers

The sector employed 45,514 workers in 2016. Of the total number, 45,169 (99.2%) were paid employees while the rest were working owners and unpaid workers.

Gambling and betting activities had the topmost number of workers with 33,740 or 74.1 percent of the total employment for the sector. Followed far behind were other amusement and recreation activities, and sports activities with 5,422 workers (11.9%) and 4,647 workers (10.2%), respectively. Figure 2 presents the distribution of employment of the sector for establishments with TE of 20 and over by industry group in 2016.

Region-wise, NCR had the biggest number of workers with 27,908 or 61.3 percent of the total employment. CALABARZON and Central Luzon distantly followed with 5,594 workers (12.3%) and 3,872 workers (8.5%), respectively.

Workforce in gambling and betting activities industry receives the highest average annual compensation

The sector paid a total compensation of PHP23.4 billion in 2016 which is equivalent to PHP518,886 average annual compensation per employee.

Among industries, gambling and betting activities paid the highest compensation of PHP21.1 billion (90.0%). Sports activities and other amusement and recreational activities followed with PHP1.1 billion (4.8%) and PHP817.5 million (3.5%), respectively. Libraries, archives, museums and other cultural activities paid the least compensation of PHP168.7 million (0.7%).

At the regional level, NCR paid the highest compensation of PHP19.1 billion or 81.6 percent of the total compensation for the sector. CALABARZON followed with PHP1.4 billion (5.9%). Central Luzon came in third with PHP1.3 billion (5.6%).

Gambling and betting activities received the highest average annual compensation of PHP625.6 thousand per employee. Libraries, archives, museums and other cultural activities ranked second with average compensation of PHP303.9 thousand per employee. Sports activities placed third with average compensation of PHP244.7 thousand per employee. Figure 3 shows the average annual compensation of employees for establishments with TE of 20 and over by industry group in 2016.

By region, NCR received the highest average annual compensation of PHP687.1 thousand per employee. Negros Island Region followed with average annual compensation of PHP442.8 thousand per employee. Central Luzon ranked third with an average annual compensation of PHP341.2 thousand per employee.

Gambling and betting activities industry generates the largest income and expense

In 2016, the total income earned by the sector reached PHP168.4 billion.

Gambling and betting activities generated the largest income of PHP157.4 billion or 93.5 percent of the total income for the sector. Other industries of the sector that earned more than one billion worth of income in 2016 were as follows:

  • Sports activities, PHP5.1 billion
  • Other amusement and recreation activities, PHP4.0 billion
  • Libraries, archives, museums and other cultural activities, PHP1.1 billion

By region, the largest income was generated by NCR amounting to PHP139.6 billion or 82.9 percent of the total income for the sector. Central Luzon followed with PHP9.8 billion (5.8%). CALABARZON ranked third with PHP8.3 billion (5.0%).

On the other hand, the sector incurred a total expense of PHP146.3 billion during its operations in 2016.

Gambling and betting activities spent PHP136.4 billion (93.2%). Other industries that incurred more than one billion worth of expense in 2016 were the following:

  • Sports activities, PHP4.7 billion
  • Other amusement and recreation activities, PHP3.4 billion
  • Creative, arts and entertainment activities, PHP1.0 billion

Figure 4 displays the distribution of income and expense for the sector with TE of 20 and over by industry group in 2016.

Across regions, NCR spent the largest in 2016 amounting to PHP124.5 billion (85.1%). CALABARZON and Central Luzon followed with corresponding expense of PHP6.9 billion (4.7%) and PHP6.6 billion (4.5 %), respectively.

Income-expense ratio stands at 1.15

The income generated per peso expense for Arts, Entertainment and Recreation sector stood at 1.15. This means that for every peso spent in the operation of the business, a corresponding income of PHP1.15 was generated.

Among industries, libraries, archives, museums and other cultural activities recorded the highest income per expense ratio of 1.28. This was followed by other amusement and recreation activities with 1.19. Gambling and betting activities ranked third with income per expense ratio of 1.15.

At the regional level, Davao Region recorded the highest income per expense ratio of 2.12. Zamboanga Peninsula and Central Luzon followed with income-expense ratios of 1.67 and 1.49, respectively.

Gambling and betting activities industry accounts for 93.5 percent of the value added

Value added of the sector for establishments with TE of 20 and over was recorded at PHP81.8 billion.

Gambling and betting activities recorded the highest value added of PHP76.4 billion or 93.5 percent of the total value added for the sector. Sports activities placed second with PHP2.6 billion (3.2%) while other amusement and recreation activities ranked third with PHP2.0 billion (2.4%). Creative, arts and entertainment activities had the least value added of PHP157.1 million (0.2%).

At the regional level, NCR registered the highest value added of PHP67.6 billion, accounting for 82.6 percent of the total value added for the sector. This was followed by Central Luzon with value added of PHP5.2 billion (6.3%) and CALABARZON with value added of PHP3.8 billion (4.7%).

Labor productivity of the sector registers at PHP1.8 million per worker

Value added per total employment, a measure of labor productivity, was valued at PHP1.8 million per worker for establishments with TE of 20 and over.

The top three labor productive industries in 2016 were as follows:

  • Gambling and betting activities, PHP2.3 million per worker
  • Libraries, archives, museums and other cultural activities, PHP1.1 million per worker
  • Sports activities, PHP567.3 thousand per worker.

Region-wise, the following were the most labor productive regions in 2016, with labor productivity per worker of more than PHP1.0 million:

  • NCR, PHP2.4 million per worker
  • Davao Region, PHP1.4 million per worker
  • Central Luzon, PHP1.3 million per worker
  • Cagayan Valley, PHP1.1 million per worker

Figure 5 presents the labor productivity of the sector for establishments with TE of 20 and over by industry group in 2016.

Gross additions to fixed assets totals PHP57.9 billion

Gross additions to fixed assets acquired by the sector during the year totaled PHP57.9 billion.

Gambling and betting activities acquired the highest gross additions to tangible fixed assets with PHP56.3 billion (97.3%). Sports activities ranked second with PHP959.7 million (1.7%). Libraries, archives, museums and other cultural activities placed third with PHP397.0 million (0.7%). Creative, arts and entertainment activities with PHP81.2 million (0.1%) recorded the least acquisition of fixed assets.

Across the country, NCR led all regions in terms of gross additions to tangible fixed assets valued at PHP56.9 billion or 98.2 percent share to total. Other regions with more than PHP100.0 million worth of additions to fixed assets were Western Visayas and CALABARZON with PHP727.2 million (1.3%) and PHP165.3 million (0.3%), respectively.

Total change in inventories stands at PHP201.8 million

Change in inventory which is defined as the value of ending inventory less beginning inventory amounted to PHP201.8 million in 2016.

Gambling and betting activities, and creative, arts and entertainment activities recorded positive changes in inventory of PHP204.8 million and PHP1.0 million, respectively in 2016.

NCR recorded the highest positive change in inventory of PHP387.9 million. Other regions with more than one million pesos worth in change in inventory in 2016 were the following:

  • Central Visayas, PHP4.4 million
  • Ilocos, PHP3.5 million
  • Northern Mindanao, PHP2.4 million
  • Davao Region, PHP1.4 million
  • Negros Island Region, PHP1.1 million

Creative, arts and entertainment activities industry receives PHP561.8 million worth of subsidies

Subsidy granted to the sector in 2016 reached PHP562.1 million.

Among industries, only two were provided subsidy by the government. These were creative, arts and entertainment activities with PHP561.8 million (99.9%) and other amusement and recreation activities with PHP323.0 thousand (0.1%).

By region, NCR recorded the highest share in subsidy received from the government amounting to PHP561.8 million, while Negros Island Region registered PHP323.0 thousand worth of subsidy.

Sales from e-commerce transactions post PHP2.4 billion

E-commerce refers to the selling of products or services over electronic system.

Highest sales from e-commerce transactions were reported by gambling and betting activities registering PHP2.4 billion. This was followed by other amusement and recreation activities; and libraries, archives, museums and other cultural activities with e-commerce sales of PHP24.3 million and PHP6.7 million, respectively.

Region-wise, only three regions reported e-commerce transactions in 2016. NCR reported the highest sales from e-commerce transactions worth PHP2.4 billion. CALABARZON and Western Visayas followed with PHP20.6 million and PHP3.8 million, respectively.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for Arts, Entertainment and Recreation sector for establishments with total employment of 20 and over.

The 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 2016.

The survey was conducted nationwide in 2017 with 2016 as the reference period, except for employment where the reference period is 15 November 2016.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the provinces 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/regional level.

Legal Authority

The conduct of the 2016 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2016 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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6% of the total establishments) belong to the formal sector of which 255,403 (86.7%) 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 2016 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.

Taxonomy 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 31 December 2016 was used for the 2016 ASPBI.

Sampling Design

The 2016 ASPBI uses a stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable. The selection of sample establishments is done independently by stratum using systematic sampling.

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)

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 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, D and J, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       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) is obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where d denotes the industry domain and p refers to region

National level estimate of the the characteristics by industry domain are 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 Arts, entertainment and recreation sector of establishments with TE of 20 and over was 88.8 percent (206 out of 232 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 2016.

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 and 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 15 November 2016.

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 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 (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 addition 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.
 

See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.

 

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