Establishments engaged in restaurants, bars, canteens and other eating and drinking places dominate the sector
The 2003 Annual Survey of Philippine Business and Industry covered a total of 87,763 hotel and restaurant establishments nationwide. Of the total figure, 97.4 percent or 85,482 establishments had an average total employment (ATE) of less than 20 while the remaining 2.6 percent or 2,281 establishments had ATE of 20 or more.
Establishments engaged in restaurants, bars, canteens and other eating and drinking places dominated the sector with 84,125 or 95.9 percent of the total. On the other hand, 4.1 percent or 3,638 were hotels, camping sites and other provisions of short-stay accommodation. Figure 1 displays the distribution of hotel and restaurant establishments by industry group.
Restaurants, bars, canteens and other eating and drinking places employ the most number of workers
Total employment in all hotel and restaurant establishments in 2003 was estimated at 487,509. Of the total figure, 366,425 workers (75.2%) were employed by hotel and restaurant establishments with ATE of less than 20.
Establishments engaged in restaurants, bars, canteens and other eating and drinking places, being numerous in number of establishments, employed the biggest number of workers reaching 438,200 which is equivalent to 89.9 percent of the total employment for the sector. Figure 2 shows the distribution of employment by industry group.
Employees of hotels, camping sites and other provisions of short-stay accommodation earn more
Total compensation paid in 2003 amounted to Php20.9 billion or an average monthly compensation of Php5,104 per paid employee.
Among industries, hotels, camping sites and other provisions of short-stay accommodation paid the highest average monthly compensation at Php10,693 per worker. On the other hand, restaurants and similar establishments paid the lowest average monthly compensation of Php4,236.
Total revenue earned by all hotel and restaurants establishments in the country was estimated at Php123.3 billion. Restaurants, bars, canteens and other eating and drinking places generated the highest revenue amounting to Php96.6 billion or 78.4 percent of the total while hotels and similar establishments contributed only Php26.7 billion or 21.6 percent. Figure 3 illustrates the distribution of revenue by industry group.
Operational cost totals to Php86.6 billion
Total cost spent to operate and maintain hotels and restaurants and similar establishments reached Php86.6 billion.
Half of the total, 52.6 percent or Php45.5 billion were spent by hotel and restaurant establishments with ATE of 20 or more while the remaining 47.4 percent or Php41.0 billion were incurred by hotel and restaurant establishments with ATE of less than 20.
Gross additions to fixed assets reaches Php4.9 billion
Gross additions to fixed assets accounted by hotel and restaurant establishments amounted to Php4.9 billion. Industry wise, restaurants, bars, canteens and other eating and drinking places recorded the largest amounting to Php3.5 billion or 72.0 percent while the remaining 28.0 percent or Php1.4 billion were for hotels and similar establishments.
Change in inventories amounts to Php248.5 million
From the inventory reports of hotel and restaurant establishments, change in inventories amounted to Php248.5 million.
Labor productivity per worker is Php252.9 thousand
Labor productivity for the sector, measured as revenue per worker was valued at Php252.9 thousand. Hotels and similar establishments exhibited a higher productivity at Php541.1 thousand while restaurants and similar establishments had a lower productivity at Php220.5 thousand.
Scope and Coverage
The 2003 Annual Survey of Philippine Business and Industry (ASPBI) formerly known as Annual Survey of Establishments (ASE) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2003. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into 14 sectors, one of which is hotels and restaurants (Sector H). The sector is composed of establishments engaged in two industry divisions, namely, hotels, camping sites and other provisions of short-stay accommodation (H551) and restaurants, bars, canteens and other eating and drinking places (H552).
All hotel and restaurants establishments nationwide with average total employment (ATE) of 200 or more were covered on a 100 percent basis and those with ATE less than 200 were selected using simple random sampling.
A total of 1,178 or 90.3% responded out of the 1,304 samples drawn for the sector. Adjustments for non-response were made through imputations.
Concepts and Definition of terms
Establishment is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.
Economic activity or business is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.
Total Employment is the number of persons who worked in or for the establishment as of November 15, 2003.
Paid employees are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.
Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.
Salaries and wages are payments in cash or in kind, prior to deduction for employee's contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.
Revenue refers to cash received and receivables for goods sold and services rendered.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.
Gross additions to fixed assets refer to the cost of acquisition of fixed assets acquired in 2003 less the value of sales of fixed assets during the year.
Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles and the like.
Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.
Inventories refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Change in Inventories as a derived indicator is computed as the value of ending inventory less the value of beginning inventory.
Value Added is the total revenue plus capital expenditures (own account) plus change in inventories less total costs (net of indirect taxes, interest expenses, depreciation and bad and doubtful debts).
Source: National Statistics Office