PREVIOUS RELEASE

 

2017 Annual Survey of Philippine Business and Industry (ASPBI) - Accommodation and Food Service Activities Sector For All Establishments: Final Results

Reference Number: 2019-265
Release Date: 18 September 2019

Table A

 

Restaurants and mobile food service activities industry accounts for majority of establishments

The final results of 2017 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 28,932 establishments in the formal sector of the economy were engaged in accommodation and food service activities. The number of establishments in 2017 decreased by 6.3 percent compared with the 30,889 establishments in 2016.

By industry, restaurants and mobile food service activities accounted for the majority of the establishments numbering to 21,307 or 73.6 percent of the total. This was followed by short term accommodation activities with 3,990 establishments (13.8%) and beverage serving activities with 2,836 establishments (9.8%). On the other hand, other accommodation recorded the least number of establishments of 327 or 1.1 percent.

The percentage distribution of the number of establishments for all accommodation and food service activities sector by industry group in 2017 is shown in Figure 1.

Figure 1

 

Restaurants and mobile food service activities industry employs the most number of workers

The total number of workers hired by the sector reached 452,732 in 2017. Of the total, 444,128 workers or 98.1 percent were paid employees and the remaining were working owners and unpaid workers. The total employment in 2017 decreased by 8.7 percent compared with the 495,973 workers in the previous year.

Across industries, restaurants and mobile food service activities employed the highest number of workers of 292,721 or 64.7 percent of the total. Short term accommodation activities followed with 115,255 workers or 25.5 percent.  Beverage serving activities came third with 33,409 workers (7.4%).

Figure 2 presents the distribution of employment for all accommodation and food service establishments by industry group in 2017.

Figure 2

The average number of workers for the sector was recorded at 16 per establishment.

Industry-wise, short term accommodation activities posted the highest average of 29 workers per establishment, followed by event catering and other food service activities with an average of 19 workers per establishment.

 

Short term accommodation activities industry pays the highest average annual compensation

The sector paid a total compensation of PHP73.1 billion to its employees in 2017. This translates to an average annual compensation of PHP164.5 thousand per paid employee.  This figure was higher by 7.7 percent compared with the average annual compensation of PHP152.8 thousand per paid employee in 2016.

Among the industries, short term accommodation activities paid the highest average annual compensation of PHP203.9 thousand per paid employee. This was  followed  by  event catering and other food service activities, and restaurants and mobile food service activities, paying PHP154.9 thousand and PHP153.0 thousand per paid employee, respectively.

Figure 3 displays the average annual compensation of paid employees for all accommodation and food service establishments by industry group in 2017.

Figure 3

 

Restaurants and mobile food service activities industry contributes the biggest share to total income and expense

The total income earned by the sector was estimated at PHP545.9 billion in 2017, a decrease of 0.9 percent from the PHP551.1 billion income in 2016.

At the industry level, restaurants and mobile food service activities accounted for the highest share to total income amounting to PHP360.3 billion or 66.0 percent. This was followed by short term accommodation activities with PHP147.9 billion income or 27.1 percent.

Meanwhile, the sector incurred a total expense of PHP442.8 billion in 2017, a 7.3 percent decrement compared with the PHP477.7 billion total expense in 2016.

Among the industries, restaurants and mobile food service activities had the highest contribution to total expense amounting to PHP300.0 billion or 67.7 percent. This was followed by short term accommodation activities and beverage serving activities with corresponding expenses of PHP111.7 billion (25.2%) and PHP24.3 billion (5.5%).

The income generated per peso expense by the sector stood at 1.23 in 2017. Among the industries, short term accommodation activities recorded the highest income per peso expense of 1.32. Next was other accommodation with income per peso expense of 1.26 and event catering and other food service activities, 1.23.

 

Value added reaches PHP197.6 billion

The total value added generated by the sector was recorded at PHP197.6 billion in 2017, an increase of 8.4 percent compared with the previous year’s value added of PHP182.3 billion.

By industry, restaurants and mobile food service activities generated the highest value added of PHP121.6 billion (61.5%).  This was followed by short term accommodation activities with PHP63.6 billion (32.2%). On third place was beverage serving activities with PHP8.8 billion (4.5%).

Labor productivity, defined as the ratio of value added to total employment, was estimated at PHP436.6 thousand per worker in 2017.  This value was higher by 18.8 percent from the recorded labor productivity of PHP367.5 thousand per worker in 2016.

Among the industry groups, the highest labor productivity was generated by short term accommodation activities at PHP552.2 thousand per worker. This was followed by restaurants and mobile food service activities with labor productivity of PHP415.4 thousand per worker. Event catering and other food service activities ranked third with labor productivity of PHP333.4 thousand per worker. On the other hand, other accommodation recorded the least labor productivity of PHP251.9 thousand per worker.

Figure 4 shows the labor productivity for all accommodation and food service establishments by industry group in 2017.

Figure 4

 

Gross Additions to Tangible Fixed Assets reach PHP26.5 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP26.5 billion in 2017, higher by 74.3 percent from the previous year’s record  of PHP15.2 billion.

Short term accommodation activities acquired the highest gross additions to tangible fixed assets of PHP17.8 billion (67.2%)  This was followed by restaurants and mobile food service activities with PHP8.3 billion (31.4%).

 

Total change in inventory records at PHP6.2 billion

Total change in inventories (ending less beginning inventory) for the sector was estimated at PHP6.2 billion in 2017.  Compared with the total change in inventories of PHP2.8 billion in 2016, this figure  increased by 117.1 percent.

Among the industries, restaurants and mobile food service activities recorded the highest change in inventories worth PHP5.0 billion (82.0%).  Short term accommodation followed with change in inventories of PHP790.1 million (12.8%).

 

Short term accommodation activities industry accounts for 97.4 percent of the total e-commerce sales

The total sales from e-commerce transactions for all accommodation and food service establishments in 2017 amounted to PHP5.8 billion, an increase of 4.0 percent compared with the PHP5.6 billion e-commerce sales in 2016.

Only two industries had e-commerce sales in 2017.  These were short term accommodation activities and restaurants and mobile food service activities with e-commerce sales of PHP5.7 billion (97.4%) and PHP151.9 million (2.6%), respectively.

 

 

 

(Sgd.) ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

 

 


TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all 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 2017.

The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017. 

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.

Data are presented by industry sub-group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national level.

 

Legal Authority

The conduct of the 2017 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 2017 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 partnership
• Cooperatives and foundations
• Single proprietorship with employment of 10 and over
• Single proprietorships with branches

Hence, the 2017 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 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24,9%) of the total establishments comprise the establishments frame are within the scope and coverage of the 2017 ASPBI.

 

Unit of Enumeration

The unit of enumeration for the 2017 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 economic 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 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 TE as of a specific date. 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 2017 was used for the 2017 ASPBI.

 

Sampling Design

The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.

 

Estimation procedure for Establishments with TE of Less Than 20

a.  Non-Certainty Stratum

The estimate of the total of a characteristic Formula  for the non-certainty employment strata TE of 20 in the sth industry domain was

Formula

where:

      s  = denotes the non-certainty employment strata in TE of less than 20           

   Xsj = value of the jth establishment in the non-certainty employment stratum in TE of less than 20 in Sth industry domain

       j = 1, 2, 3...ns establishments

  Wsj = weight of the jth establishment in the non-certainty employment stratum in TE of less than 20 in sth industry domain

Formula

   Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in sth industry domain

    ns = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth industry domain

 

b.  Certainty Stratum

The total of a characteristic (Xc ) for the certainty employment stratum in the cth industry domain was

Formula

where:

       c = denotes the certainty employment strata in TE of less than 20 in the cth industry       

   Xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain

       j = 1, 2, 3...mc establishments                                                 

   mc = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

c.  Total Estimate for TE of Less Than 20

For all sections except B and C, national level estimates of the total of a characteristic Formula  for the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 Formula

where d denotes the industry domains in each region

For establishments with TE of 20 and over, the 17 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 Formula for the non-certainty employment strata in an industry domain in each region,

Formula

where:

      s   = denotes the non-certainty employment strata in TE of 20 and over       

      p   = 1, 2,...17 regions (geographic domains)        

   Xspj  = value of the jth establishment in the non-certainty employment strata with TE of 20 and over 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 and over for an industry domain in each region                                                                                                                                                                                      

Formula

   Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over 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)

The estimate of the total of a characteristic Formula for the certainty employment stratum in an industry domain in each region,

Formula

where:

       c  = denotes the certainty employment strata in TE of 20 and over        

       p  = 1, 2,...17 regions (geographic domains)

   Xcpj = value of the jth establishment in the 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  Formula for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimates for all employment strata  (non-certainty and certainty) in the same industry domain,

 Formula

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 Formula 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 factor (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n was recomputed as

Formula

Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Formula

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 all Accommodation and Food Service Activities sector  was 87.6 percent (1,290 out of 1,473 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. 

Of the total responses, 25 establishments responded online.

Reports of the remaining non-reporting establishments were taken from the financial statements from Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2017 were not included in the generation of statistical tables.

 

Limitation of Data

The survey covered only the formal sector of the economy.

 

Concepts and Definitions of Terms

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.

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.

E-commerceis 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.

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 are 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.

Gross additions to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Income or Revenue are 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.

Inventories are 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.

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.

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.

Value added is gross output less intermediate input. Gross output for Accommodation and Food Service Activities sector is the sum of income from service rendered, real estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties, income from non-industrial service done for others (less rent income from land), sales of goods (less cost of goods sold), grants and donations, other income, capital expenditures of fixed assets produced on own account and change in inventories.  Intermediate input is 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.