Restaurants and mobile food service activities dominate Accommodation and Food Service Activities section
Based on the final results of the 2012 Census of Philippine Business and Industry (CPBI) conducted nationwide, with 2012 as the reference year, the Philippines had a total of 26,557 establishments engaged in Accommodation and Food Service Activities. A total of 20,279 establishments or 76.4 percent had a total employment (TE) of less than 20 while 6,278 or 23.6 percent had TE of 20 and over.
As shown in figure 1, restaurants and mobile food service activities garnered the highest number of establishment at 74.8 percent or 19,853 establishments followed by short term accomodation activities with 13.1 percent or 3,482 establishments. Other accomodation recorded the lowest number of establishments with 301 or 1.1 percent.
On the regional level, National Capital Region (NCR) had the most number of establishments with 10,258 or 38.6 percent. CALABARZON (Region IVA) placed second with 3,175 (12.0%) establishments, Central Visayas (Region VII) followed with 2,330 establishments (8.8%). Autonomous Region in Muslim Mindanao (ARMM) had the least with 77 establishments or 0.3 percent.
Total employment for the sector in 2012 reaches 422,551
Employment in 2012 reached a total of 422,551. TABLE 1 shows that, 408,874 or 96.8 percent were paid employees while the remaining 13,677 (3.2%) were working owners and unpaid workers.
Restaurants and mobile food service activities, having the largest share in terms of number of establishments also had the most number of employees with 290,865 (68.8%). Short term accommodation garnered 21.9 percent or 92,422 employees. Beverage serving activities with 29,917 (7.1%). The remaining 9,346 or 2.2 percent were distributed to event catering and other food service activities and other accommodation.
Region wise, NCR was the top employer among regions with 171,075 employees (40.%). CALABARZON followed with 48,242 employees (11.4%) and Central Visayas with 40,700 (9.6%). ARMM registered the least with 719 employees or 0.2 percent.
Restaurants and mobile food service activities pay the highest compensation
The total compensation paid by Accommodation and Food Service Activities amounted to PHP50.6 billion, an equivalent of PHP123,673 average annual compensation per paid employee.
By industry group, restaurants and mobile food service activities paid the highest compensation to its employees amounting to PHP32.2 billion or 63.6 percent of the total. Short term accommodation activities paid PHP14.5 billion or 28.6 percent. Those working in beverage serving activities received a total compensation of PHP2.9 billion or 5.8 percent of the total compensation.
By region, employees from NCR received the highest average annual compensation of PHP160.0 thousand. Central Luzon with PHP113.5 thousand average annual compensation, while the least earners were employees from ARMM with PHP47.9 thousand average annual compensation.
Employees in short term accommodation activities earn the highest in 2012
Employees in short term accommodation activities were the highest earners in 2012 with an average annual compensation of PHP160,699 thousand per paid employee. Workers in event catering and other food service activities received an average annual remuneration of PHP177,195 thousand. The lowest earners were workers from beverage serving activities with PHP104,901 thousand average annual compensation.
Total income amounts to PHP361.5 billion
Total income earned in 2012 by Accommodation and Food Service Activities section reached PHP361.5 billion. Restaurants and mobile food service activities was the top contributor with PHP254.2 billion or 70.3 percent of the total. Short term accommodation activities generated PHP85.1 billion (23.5%). The remaining PHP22.1 billion or 6.1 percent was distributed to beverage serving activities, event catering and other food service activities, and other accommodation respectively.
With respect to regions, NCR produced the highest income amounting to PHP195.3 billion (54.0%) followed by CALABARZON with PHP32.0 billion or 8.8 percent. Completing the top three was Central Luzon with PHP30.7 billion or 8.5 percent of the total income. The least income generated was registered to ARMM with PHP158.7 million (0.04%).
Total expense reaches PHP319.9 billion
Total expense for operating the industry summed up to PHP319.9 billion. Restaurants and mobile food service activities disbursed the highest expense of PHP224.9 billion (70.3%). Short term accommodation activities incurred a total expense of PHP74.6 billion or 23.3 percent. Having the lowest number of establishments, other accommodation spent the least with PHP983.9 million (0.3%).
By region, NCR spent the largest as it incurred PHP175.8 billion (55.0%) for operating industry, CALABARZON followed with PHP29.0 billion or 9.1 percent. Central Visayas with PHP25.0 billion or 7.8 percent. As expected, the least expense was recorded by ARMM with PHP109.3 million (0.03%).
Income-expense ratio amounts to 1.13
Income-expense ratio, the income generated per PHP1 expense, amounted to 1.13. Among industries, other accommodation recorded the highest with 1.32 income per PHP1 expense. Event catering and other food service activities and short term accommodation activities followed with income-expense ratios of 1.17 and 1.14 respectively. The lowest among the group was recorded for beverage serving activities with 1.04 income per PHP1 expense.
Value added amounts to PHP114.0 billion
Value added was estimated at PHP114.0 billion for Accommodation and Food Service Activities. Total value added of restaurants and mobile food service activities was estimated at PHP71.4 billion or 62.4 percent. Short term accommodation activities had a total value added of PHP35.9 billion or (31.4%). The least value added was accounted for by other accommodation with PHP746.6 million or 0.007 percent. Figure 5 shows the distribution of value added for Accommodation and Food Service Activities.
Other accommodation employees are the most labor productive
Value added per worker, a measure of labor productivity, was valued at an average of PHP270.6 thousand per employee. Among industries, other accommodation had the highest average at PHP399.9 thousand, followed by short term accommodation activities with PHP388.9 thousand while the least was recorded to beverage serving activities with at PHP150.5 thousand.
Gross additions to tangible fixed assets totals PHP9.5 billion
Gross additions to tangible fixed assets in 2012 totaled to PHP9.5 billion. By industry group, short term accommodation activities registered the highest amounting to PHP5.1 billion (53.3%). Restaurants and mobile food service activities had PHP4.0 billion (42.1%) while the least was contributed by event catering and other food service activities with PHP35.5 million or 0.4 percent.
Total change in inventories amounts to PHP2.6 billion
Change in inventories, defined as the value of ending inventory less beginning, amounted to PHP2.6 billion for the section in 2012. Restaurants and mobile food service activities showed the highest with PHP2.2 billion (85.6%), while short term accommodation had PHP272.7 million or 10.6 percent. The rest with combined total of PHP98.0 million was distributed to beverage serving activities, event catering and other food service activities and other accommodation respectively.
Sales from E-commerce amounts to PHP107.7 million
Sales from e-commerce transaction was recorded only for short term accommodation activities amounting to PHP107.7 million. The rest of the industries for accommodation and food service activities did not have e-commerce transaction in 2012.
This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for the Accommodation and Food Service Activities sector for all sizes.
The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).
Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.
Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.
Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.
Scope and coverage
The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
1. Corporations and partnerships
2. Cooperatives and foundations
3. Single establishment with employment of 10 or more
4. Single proprietorship with branches
The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.
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 Classificatin (PSIC).
The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).
Agriculture, Forestry and Fishing (A)
Mining and Quarrying (B)
Electricity, Gas, Steam and Air Conditioning Supply (D)
Water Supply; Sewerage, Waste Management and Remediation Activities (E)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
Transport 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)
Private Education (P)
Human Health and Social Work Activities (Q)
Arts Entertainment, and Recreation (R)
Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
Branch (EO=2) is an establishment which has a separate main office located elsewhere.
Establishment and main office (EO=3) is one where the establishments is located in the same address as the main office and with branch/es elsewhere.
Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
Ancillary unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal organization (LO) This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole propietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whatever they are stock or non-stock corporations.
Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial Classification. The Industrial Classification of an economic unit is 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 (SZ) of the Unit of Enumeration. The size of an economic unit 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/enterprise. 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.
The following are the size codes and corresponding total employment used in the 2012CPBI:
|TE Code||Total Employment||TE Code||Total Employment|
|0||1 - 4||5||100 - 199|
|1||5 - 9||6||200 - 499|
|2||10 - 19||7||500 - 999|
|3||20 - 49||8||1000 - 1999|
|4||50 - 99||9||2000 & Over|
Geographic Classification. Establishments are also classified 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 latest PSGC as of September 30, 2012 was used for the 2012 CPBI.
Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Total response rate for Accommodation an Food Service Activities sector was 90.2 percent (3,823 out of 4,239 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, nineteen responded online, and one submitted through e-mail.
CONCEPTS AND DEFINITIONS OF TERMS
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 November 15, 2012.
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 includes 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.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices 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.
Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Value added is gross output less intermediate cost. Gross output for accommodation and food service activities is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise incom), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee and other cost.
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.
Source: Philippine Statistics Authority - National Statistics Office