Table A. Comparative Summary Statistics for Accommodation
and Food Service Sector: Philippines, 2019 and 2020

Restaurants and mobile food service activities industry accounted for the majority of establishments

The preliminary results of the 2020 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 29,384 establishments in the formal sector of the economy were engaged in accommodation and food service activities. This represents a decrease of -19.8 percent compared with the 36,630 establishments in 2019. (Table A)

By industry group, restaurants and mobile food service activities accounted for the majority of the establishments with 22,366 or 76.1 percent of the total number of establishments. This was followed by short term accommodation activities with 3,870 establishments (13.2%) and beverage serving activities with 2,095 establishments (7.1%). On the other hand, other accommodation recorded the least number of establishments of 411 or 1.4 percent of the total. (Table 1 and Figure 1)

Among the regions, the National Capital Region (NCR), with 9,893 establishments or 33.7 percent of the total, led in terms of number of establishments. CALABARZON ranked second with 4,227 establishments (14.4%), followed by Central Visayas with 2,714 establishments (9.2%). (Table 3)

Figure 1.  Distribution of Accommodation and Food Service Activities Sector
by Industry Group: Philippines, 2020

Restaurants and mobile food service activities industry employed the highest number of workers

The total employment for the sector reached 363,086 workers, a decrease  of -44.2 percent compared with the 650,418 workers in 2019.  Of the total employment, 98.0 percent were paid employees, while the rest were working owners and unpaid workers. (Tables A and 1)

The top three industry groups of the sector provided about 98.0 percent of the total workforce of the sector.  These were the following:

1. Restaurants and mobile food service activities, 69.6 percent;
2. Short term accommodation activities, 22.7 percent; and
3. Beverage serving activities, 5.3 percent.  (Table 1 and Figure 2)

Region-wise, NCR, having the most number of establishments, employed the bulk of workers with 134,287 or 37.0 percent of the total.  CALABARZON and Central Luzon followed with 44,142 workers (12.2%) and 35,616 workers (9.8%), respectively. (Table 3)

Figure 2. Distribution of Employment for Accommodation and Food
Service Activities Sector by Industry Group: Philippines, 2020

The average number of workers for the sector was recorded at 12 workers per establishment, a decrease of -33.3 percent compared with the 18 workers per establishment in 2019. (Tables A and 2)

Industry-wise, short term accommodation activities posted the highest average of 21 workers per establishment, followed by restaurants and mobile food service activities and event catering and other food service activities with an average of 11 workers per establishment and beverage serving activities with an average of nine workers per establishment. (Table 2)

On the other hand, Zamboanga Peninsula had the highest average of 15 workers per establishment, while Eastern Visayas posted the lowest average of nine workers per establishment. (Table 4)

Beverage serving activities industry received the highest average annual compensation

The total compensation paid by the sector to its employees reached PhP 62.00 billion in 2020,  translating to an average annual compensation of PhP 174.32 thousand  per  paid  employee. This amount was -5.3 percent lower than the average annual compensation of  PhP 184.02 thousand per paid employee in 2019.  (Tables A, 1, and 2, and Figure 3)

Among the industry groups, beverage serving activities paid the highest average annual compensation of PhP 215.43 thousand per paid employee. This was followed by short term accommodation activities paying PhP 206.05 thousand per paid employee. Moreover, restaurants and mobile food service activities rank third and paid PhP 162.57 thousand per paid employee. (Table 2 and Figure 3)

Across the country, NCR registered the highest average annual compensation of PhP 237.40 thousand per paid employee, the only region exceeding the national average annual compensation in 2020. Ranked second and third were Central Luzon and CALABARZON with PhP 160.70 thousand and PhP 158.76 thousand average annual compensation per paid employee, respectively. (Table 4)

Figure 3. Average Annual Compensation of Paid Employees
for Accommodation and Food Service Activities Sector
by Industry Group: Philippines, 2020

Restaurants and mobile food service activities industry contributed the biggest share to total revenue and expense

The total revenue generated by the sector amounted to PhP 550.73 billion in 2020, a decrease of -43.9 percent compared with the PhP 982.53 billion total revenue earned in 2019.

On the other  hand, total  expense incurred  by  the  sector reached PhP 508.26  billion, lower by -37.1 percent than the PhP 807.59 billion total expense in 2019. (Table A)

The top three industry groups in terms of revenue and expense for the sector were as follows:

1. Restaurants and mobile food service activities with revenue of PhP 451.43 billion (82.0%) and expense of PhP 409.63 billion (80.6%);                                                        
2. Short term accommodation activities with PhP 63.13 billion (11.5%) revenue and expense of PhP 64.13 billion (12.6%); and                                            
3. Beverage serving activities with PhP 31.98 billion (5.8%) proceeds and PhP 30.56 billion expense (6.0%). (Table 1 and Figure 4).

At the regional level, the top three regions in terms of revenue and expense were as follows:

1. NCR with revenue of PhP 281.07 billion (51.0%) and expense of PhP 265.79 billion (52.3%);
2. CALABARZON with revenue of PhP 67.33 billion (12.2%) and expense of PhP 63.31 billion (12.5%); and
3. Central Luzon with a revenue of PhP 53.07 billion (9.6%) and expense of PhP 42.09 billion (8.3%). (Table 3)

Meanwhile, the revenue per peso expense generated by the sector stood at PhP 1.08. This reflects a decrease of -11.5 percent compared with the revenue per peso expense ratio of 1.22 in 2019. Among the industry groups, restaurants and mobile food service activities recorded the highest revenue per peso expense ratio of 1.10. (Tables A and 2)

By region,  Autonomous Region in Muslim Mindanao recorded the highest revenue per peso expense ratio of 1.39, followed by Bicol Region with a revenue per peso expense ratio of  1.32 and Zamboanga Peninsula with  revenue per peso expense ratio of 1.30. (Table 4)

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

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary results of the  2020 Annual Survey of Philippine Business and Industry (ASPBI) for Accommodation and Food Service Activities establishments (Sector I).

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 2020.

The conduct of the 2020 ASPBI is authorized under Republic Act No. 10625 known as the Philippine Statistical Act of 2013 which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

II. Data collection and Processing

The survey was conducted nationwide in 2021 with the year 2020 as the reference period, except for employment whose reference period is as of 15 November 2020.

Sample establishments were given various options in accomplishing the survey questionnaire. These were the following:

1. online questionnaire available at https://aspbi.psa.gov.ph;
2. electronic copy of the questionnaire either in portable document format (.pdf) or Excel (.xlsx) file format; and
3. printed copy of the questionnaire.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2020 ASPBI questionnaires in the provinces.

Data are presented by industry group or 3-digit classification as classified under the 2009 Philippine Standard Industrial Classification (PSIC).

III. Taxonomy of Establishments

An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.

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, or an ancillary unit other than the main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be a single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, or 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 PSA Resolution No. 01 Series of 2017-158 signed on 14 February 2017, was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment as of the time of visit during the latest Updating of the List of Establishments.

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. Also included 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 2020 was used for the
2020 ASPBI.

IV. Scope and Coverage

The 2020 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

1. Agriculture, Forestry and Fishing (A)
2. Mining and Quarrying (B)
3. Manufacturing (C)
4. Electricity, Gas, Steam, and Air Conditioning Supply (D)
5. Water Supply; Sewerage, Waste Management and Remediation Activities (E)
6. Construction (F)
7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
8. Transportation and Storage (H)
9. Accommodation and Food Service Activities (I)
10. Information and Communication (J)
11. Financial and Insurance Activities (K)
12. Real Estate Activities (L)
13. Professional, Scientific and Technical Activities (M)
14. Administrative and Support Service Activities (N)
15. Education (P)
16. Human Health and Social Work Activities (Q)
17. Arts, Entertainment and Recreation (R)
18. Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:

1. Corporations and partnership
2. Cooperatives and foundations
3. Single proprietorship with employment of 10 and over
4. Single proprietorships with branches

Hence, the 2020 ASPBI covered only the following economic units:

1. All establishments with total employment (TE) of 10 or more; and
2. 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.

V. Sampling Design

The 2020 ASPBI uses stratified systematic sampling design with 3-digit or 5-digit PSIC as the first stratification variable, depending on the sector, and total employment, which is classified into Micro, Small, Medium establishments (MSME), as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, called strata, and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases precision of “overall” survey estimates.

Domain

Domain

The geographic domain of the 2020 ASPBI is region. The industry domain/stratum is 3-digit or 5-digit industry classification, and the employment domain/stratum is the MSME classification.

Unit of Enumeration

The unit of enumeration for the 2020 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2020 ASPBI was extracted from the preliminary 2020 List of Establishments (LE) as of 06 January 2021.  This frame was used to draw the sample establishments for the survey. The preliminary 2020 LE showed that there were 1,000,440 establishments in operation in the country of which 336,205 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2020 ASPBI.

Estimation Procedure

1) Estimation of Survey Weights

Base Weight

The base weight is the inverse of the probability of selection.  For the ASPBI, the base weight for each domain is given by:

where:

w_hk  = weight of the kth establishment in the h^th stratum
N_h    = total no. of establishments in the h^th stratum
n_h    = total no. of sample establishments in the h^th stratum
h      = refers to the industry-employment stratum

Adjustment Factor

To take into account the non-responding sample establishments, the adjustment factor by region and industry domain is as follows:

where:

A_s     =  adjustment factor for industry domain s
X_1k   = eligibility status of the k^th sample establishment (1 if eligible, 0 otherwise)
X_2k  =  responding status of the k^th sample establishment (1 if responding, 0 otherwise)

Final Weight

The final weight is the product of the base weight and adjustment factor.  That is,

where:

w'_hk = final weight of the kth sample establishment in stratum h
w_hk = weight of the k^th establishment in the h^th stratum
A_s   = adjustment factor for industry domain s

2) Estimation of Total

Total by Industry-Employment Stratum

The estimator for the total of a characteristic in each industry-employment stratum in a region (geographic domain) is given by:

where:

y_hk   = value of the k^th sample establishment in stratum h
w’_hk = final weight of the kth sample establishment in stratum h

Total by Industry Stratum and Domain

The estimator for the total of a characteristic in each industry stratum in each regional domain is given by:

where:

h_i = number of employment strata for industry stratum i

Total by Employment Stratum and Domain

The estimator for the total of a characteristic in each employment stratum in each regional domain is given by:

where:

h_j = number of industry strata for employment stratum j
r  =  subscript for geographic domain r

Total by Geographic Domain

The estimator for the total of a characteristic in each geographic domain is given by:

where:

I  = total number of industry strata in geographic domain r
J = total number of employment strata in geographic domain r

Total by Industry Stratum (National)

The estimator for the national total of a characteristic in each industry domain/stratum is given by:

where:

R = total number of regions

Total by Employment Stratum (National)

The estimator for the national total of a characteristic in each employment domain/stratum is given by:

National Total

The estimator for the national total of a characteristic is given by:

VI. Response Rate

Response rate for all Accommodation and Food Service Activities sector was 87.4 percent (3,463 out of 3,964 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out-of-scope establishments.

Of the total responses, 122 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2020 were not included in the generation of statistical tables.

VII. Concepts and Definitions of Terms

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer on behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

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.

Expense is the 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.

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.

Revenue is the 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.

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.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.