The industry section on Arts, Entertainment, and Recreation (Section R) includes five industry groups covering the activities to meet varied cultural, entertainment and recreational interests of the general public, including live performances, operation of museums sites, sports, gambling and recreation activities. Establishments engaged in creative, arts and entertainment activities; libraries, archives, museums, and other cultural activities; gambling and betting activities; sports activities; and other amusement and recreation activities.

Other amusement and recreation activities dominated the arts, entertainment and recreation industry

A total of 4,087 establishments were engaged in arts, entertainment and recreation activities, an increase of 34.2 percent from the 3,046 establishments reported in 2012. (Table A)

Among these, 2,037 establishments or 49.8 percent of the total count were engaged in other amusement and recreation activities. Establishments engaged in gambling and betting activities with 1,384 establishments (33.9%) ranked second, followed by establishments engaged in sports activities with 558 establishments (13.7%). (Table 1A, and Figure 2)

Across regions, CALABARZON recorded the highest number of establishments engaged in arts, entertainment, and recreation activities with 505 establishments (12.4%). National Capital Region (NCR) and Central Luzon came next with 453 establishments (11.1%), and 386 establishments (9.4%), respectively. Autonomous Region in Muslim Mindanao (ARMM), with only 17 establishments or 0.4 percent of the total, had the least number of establishments. (Table 3A)

Workers in establishments engaged in gambling and betting accounted for almost half of the total workforce of the industry section

Establishments in arts, entertainment, and recreation industry employed a total of 75,968 employees, a growth of 22.9 percent from 61,815 employees in 2012. Of the total, 98.0 percent or 74,482 employees were paid employees, while the remaining were unpaid workers and/or working owners. (Table A)

By industry group, gambling and betting activities employed 39,181 employees or 51.6 percent of the total. This is followed by other amusement and recreation activities with 24,873 employees (32.7%), and sports activities with 8,661 employees (11.4%). (Table 1A, and Figure 3)

 An average of 19 employees per establishment was computed at the national level

The computed average employment per establishment was 19 employees. Libraries, archives, museums, and other cultural activities; gambling and betting activities; creative, arts, and entertainment activities surpassed the computed industry average employment per establishment with 35, 29, and 26 employees, respectively. (Table 2)

At the regional level, NCR recorded an average employment per establishment of 70 which is higher than the national level of 19 employees per establishment. (Table 4)

The arts, entertainment, and recreation industry hired a total of 10,098 workers under a sub-contracting agreement or through manpower agencies/contractors. Those engaged in gambling and betting activities reported the biggest count with 4,499 workers. This is followed by other amusement and recreation activities; and sports activities with 3,469, and 1,923 workers, respectively. Meanwhile, establishments engaged in creative, arts, and entertainment activities reported the lowest number of sub-contracted workers with only 48 workers. (Table 1)

Gambling and betting paid the highest compensation among establishments in the industry in 2018

The total compensation paid by the establishments engaged in arts, entertainment, and recreation amounted to PhP 23.7 billion, translating to an average annual compensation of PhP 318.4 thousand per paid employee. (Table 1)

Industry-wise, those engaged in gambling and betting activities paid the highest compensation of PhP 17.7 billion or 74.8 percent of the total compensation. Those engaged in other amusement and recreation activities; and sports activities distantly followed with PhP 3.6 billion (15.2%) and PhP 1.7 billion (7.1%), respectively. (Tables 1, and

Additionally, gambling and betting activities was the only industry group that exceeded the average annual compensation at the national level with PhP 455.0 thousand per paid employee. (Table 1, and Figure 4)

By region, establishments in NCR paid the biggest annual compensation which amounted to PhP 15.7 billion (66.2%). Those in CALABARZON and Central Luzon followed far behind with PhP 2.1 billion (8.9%), and PhP 1.6 billion (6.8%), respectively. Those located in ARMM paid the lowest compensation at PhP 1.2 million annually. (Tables 3, and

The only region which surpassed the average annual compensation per paid employee of PhP 318.4 thousand at the national level was NCR with PhP 499.7 thousand. (Table 3)

Gambling and betting contributed a major share in total revenue and total expense of the whole industry

Total revenue generated by establishments engaged in arts, entertainment and recreation reached PhP 230.7 billion in 2018 while expenses incurred totaled to PhP 181.8 billion. This is a 75.2 percent increase in total revenue, and 65.0 percent increase in total expenses from their corresponding values in 2012. (Table A)

Establishments engaged in gambling and betting activities earned and spent PhP 201.1 billion (87.2%) of the total revenue, and PhP 154.0 billion (84.7%) of the total expense of the whole industry. (Table 1A, and Figure 5)

At the regional level, only NCR had more than 70 percent of the industry’s total revenue, and total expense, amounting to PhP 164.2 billion (71.2%), and PhP 126.5 billion (69.6%), respectively. (Table 3A)

Revenue per expense ratio stood at 1.3

The income generated per peso expense was computed at 1.3. This means that for every peso spent, a corresponding income of PhP 1.3 was generated.

Computed revenue per expense ratio for gambling and betting activities was also 1.3, the highest among the industry groups. (Table 2)

Gambling and betting activities industry generated the highest value added in 2018

Value added generated by the sector is estimated at PhP 130.2 billion in 2018. Among industry groups, establishments engaged in gambling and betting activities registered the highest value added at PhP 118.3 billion or 90.9 percent of the total value added of the section. Other amusement and recreation activities; and sports activities distantly followed with PhP 7.3 billion (5.6%), and PhP 3.8 billion (3.0%), respectively. (Table 1A)

Gambling and betting activities exceeded the computed average labor productivity

Labor productivity (value added per total employment) for the industry section was computed at PhP 1.7 million per worker. Among industry groups, gambling and betting activities registered a labor productivity ratio of PhP 3.0 million which exceeded the national level ratio. (Table 2)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General