Food and beverage service activities dominates all tourism characteristic industries
Based on the results of the 2014 Survey of Tourism Establishments in the Philippines, there were a total of 39,385 establishments in the formal sector of the economy engaged in tourism characteristic activities. Tourism characteristic industries are: accommodation; food and beverages; road, water and air transport; transport equipment rental; travel agencies and other reservation service activities; cultural activities; sports and recreational activities; financial and insurance activities; and health and wellness.
Food and beverage service activities topped among the industries with 24,066 establishments or 61.1 percent of the total. This was followed by health and wellness with 7,212 establishments (18.3%). Accommodation ranked third with 3,431 establishments (8.7%). Other tourism activities numbered 3,141 establishments or 8.0 percent. The least number of establishments was recorded by transport operators; tour and travel agencies with 1,535 establishments. Figure 1 shows the percentage distribution of all establishments by tourism characteristic industry in 2014.
Food and beverage service activities recorded the highest seasonal workers from March to May
Seasonal workers hired during tourism peak season from March to May of 2014 by tourism characteristic industries reached a total of 38,384 workers.
Among industries, food and beverage service activities, having the highest number of establishments, recorded the largest number of seasonal workers at 17,022 (44.3%). This was followed by accommodation with 15,140 (39.4%). Other tourism activities ranked third with 4,088 seasonal workers or 10.7 percent. Health and wellness accounted for 1,838 workers (4.8%). Transport operators, tour and travel agencies had the least recorded number of seasonal workers at 296 (0.8%). Distribution of seasonal workers for all establishments by tourism characteristic industry is shown in Figure 2.
Total revenue generated from tourist amounts to PHP560.5 billion
Gross revenue generated from tourists in 2014 by all establishments engaged in tourism characteristic activities reached PHP560.5 billion.
Across industries, food and beverage service activities earned the biggest of the total revenue generated from tourist at PHP220.8 billion or 39.4 percent of the total. Ranked second was transport operators; tour and travel agencies with PHP141.7 billion (25.3%). This was followed by accommodation and health and wellness with PHP113.4 billion and PHP45.7 billion respectively. Other tourism activities recorded the least revenue with just PHP38.9 billion or 6.9 percent. Figure 3 shows the distribution of revenue generated from tourists for all tourism characteristic establishments.
About 14.3 percent of the establishments plan to expand; 19.0 percent plan to renovate
In 2014, 5,637 establishments or 14.3 percent had plans for expansion within the next five years while 7,465 establishments or 19.0 percent planned to renovate within the next five years.
In terms of expansion, food and beverage service activities topped among the tourism characteristic industries with 70.4 percent. This was followed by health and wellness with 11.5 percent. Ranked third and fourth were accommodation and other tourist activities with 10. 0 and 4.5 percent respectively. The least among industry was transport operators; tour and travel agencies with only 3.6 percent.
Food and service activities reported the highest in terms of renovation among tourism characteristics industry with 61.3 percent. Health and wellness came in second with 15.3 percent, completing the top three was accommodation with 12.7 percent. Other tourism activities with 8.2 percent. Transport operators; tour and travel agencies had the least number of establishments that planned to renovate within the next five years with only 2.5 percent.
Figure 4 shows the percent distribution of establishments with expansion and renovation plans.
Food and beverage service activities registered the highest DOT accreditations
Out of the total number of 39,385 tourism characteristic establishments, 8,869 establishments or 22.5 percent were accredited by the Department of Tourism (DOT).
More than half or 58.3 percent of the accredited establishments were engaged in food and beverage service activities. Accommodation had a 20.0 percent share of the total accreditation. The least share of accreditation of 6.5 percent was for other tourism activities. Figure 5 shows the distribution of establishments with DOT accreditation.
This Special Release presents the preliminary results of the 2014 Survey of Tourism Establishments in the Philippines (STEP).
The 2014 STEP is the second survey round conducted and is a rider to the 2014 Annual Survey of Philippine Business and Industry (ASPBI). Data collected will provide information on the available supply of tourism goods, products and services. The Philippine Tourism Satellite Account (PTSA) provides the framework by which the economic contribution of tourism is measured. Using this account, it is possible to quantify the contribution of tourism industry in the economy within the context of the Philippine Systems of National Accounts (PSNA). Data are valuable inputs in the compilation of the PTSA.
The survey was conducted by the Philippine Statistics Authority (PSA) nationwide in April 2015 with the year 2014 as the reference period..
Tourism Act of 2009 or RA 9593 emphasizes that tourism is an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socio-economic growth and cultural affirmation to generate investment, foreign exchange and sense of national pride for all Filipinos. Moreover, the Philippine Statistical Development Plan provides the blueprint of development of the tourism industry. This is in recognition of the importance, role and impact of tourism on the social and economic development and environment and cultural landscape in the country. Therefore, there is a need to measure the economic contribution of tourism as an input to effective and efficient policy research, monitoring, analysis and development of the tourism industry.
NSCB Resolution No. 4, Series of 2005 – [Approving and Adopting the Philippine Tourism Statistical Classification System (PTSCS)] provides the basis for the generation, consolidation, dissemination and analysis of tourism statistics, specifically in the compilation of the PTSA.
The PTSCS identifies characteristic and connected tourism products (goods and services) and industries. Tourism characteristic products are goods and services which would cease to exist in meaningful quantity or those for which the level of consumption would be significantly reduced in the absence of visitors (e.g. accommodation services). Activities from which the products were created are termed as tourism characteristic industries.
On the other hand, tourism connected products are goods and services that are affected significantly without tourism; or are important to tourism, independent of level of usage of the product by tourists. Similarly, activities from which the products were created are termed as tourism connected industries.
The conduct of 2014 STEP will generate statistics on the availability of supply from tourism industries that will meet the consumption of goods and services of visitors. The 2014 STEP will continuously serve as a source of data on tourism supply.
The general objective of the 2014 STEP is to provide data on tourism characteristic establishments in the country. Specifically, the 2014 STEP aims to:
- provide data on the supply and capacity in terms of facilities and services
- gather data on employment by sex and nationality
- gather data on revenue generated from tourist
- provide information on indicators for future expansion and/or renovation plans
The conduct of the 2014 STEP is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2014 STEP is a nationwide survey of establishments in the formal sector engaged in tourism characteristic industries. Tourism characteristic industries as defined in the IRTS 2008 (International Recommendation of Tourism Statistics) with grouping according to industry sub-class (5-digit) of the 2009 PSIC. (See Table 1)
It shall completely cover the following tourism characteristic industries:
- Accommodation (I55 except I55901- Dormitories/boarding houses); and
- Chartered buses and cars operation (e.g. tourist buses, rent-a-car) (H49204 and H49324).
The other tourism characteristic industries shall be taken on a sampling basis.
Tourism connected industries are excluded from the coverage of the 2014 STEP.
Unit of Enumeration
The unit of enumeration for the 2014 STEP were the establishments. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of economic 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.
Legal Organization (LO). This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment.
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.
Employment Size. 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. 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. 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 December 31, 2014 was used for the 2014STEP.
The frame for the 2014 STEP was extracted from the 2014 List of Establishments (LE). This frame was used to draw the sample establishments for the survey. The initial estimate of the 2014 LE shows that there are about 944,000 establishments in operation in the country for the year. About 266,000 establishments (28% of the total establishments) belong to the formal sector of which 39,925 (15%) comprise the frame for the 2014 STEP.
Selection of sample establishment for the 2014 STEP was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
For the 2014 STEP, five types of questionnaire were used. The 2014 STEP questionnaires are shown in Table 2.
The data items found in the STEP questionnaires are Listed in Table 3.
Total response rate as of 30 September 2016 for all establishments by tourism characteristic industry was 85.2 percent (6,142 out of 7,210 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 65 establishments responded online.
Table 4 shows the response rate by industry.
CONCEPTS AND DEFINITIONS OF TERMS
Accommodation services - includes Room Service, lodging inn or tourist inn. Room service is an accommodation available at many hotels where workers at the hotel bring food and other items to hotel rooms, by request of the guest and usually for extra charge.
Accreditation - a certification issued by the Department of Tourism (DOT) which recognizes the holder to having complied with its minimum standards in the operation of the establishment concerned.
Economic activity or business - is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.
Electronic payment (e.g. credit card, ATM) - refers to money paid electronically. Also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency.
Employment - is the number of persons who worked in or for this establishment as of 15 November 2014.
Foreign exchange counter - is a business establishment whose customers exchange one currency for another.
Health and Wellness Tourism - refers to the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for health and wellness purpose not related to the exercise of an activity remunerated from within the place visited..
Package Tour - refers to a set of products and services offered to the visitors that is composed of varieties of tourism characteristic products (such as transport, accommodation, food services, recreation, etc.). The component of a package tour might be pre-established, or can result from an "a la carte" procedure where the visitor decides the combination of products/services he/she wishes to acquire. This can be synonymously used with "package travel and/or package holiday".
Revenue generated from tourists - refers to the percentage of total cash received and receivables for goods/products and by-products sold and services rendered generated from tourists.
Seasonal Workers - refer to individuals who were hired for a specific period of time to augment the regular employees due to high demand of clients and/or increased work demands during peak months.
Tour - refers to any arranged journey intended for purposes of tourism to one or more places and back to the point of origin. The arranged journey may not necessarily be pre-paid.
Tour packaging services - a package holiday or package tour consists of transport and accommodation advertised and sold together by a vendor known as a tour operator. Other services may be provided like a car rental, activities or outings during the holiday. Transport can be via charter airline to a foreign country. Package holidays are a form of product bundling. Package holidays are organized by a tour operator and sold to a consumer by a travel agent. Some travel agents are employees of tour operators, others are independent.
Tourism - refers to activities of foreign and domestic visitors traveling to and staying in places outside their usual environment for not more than one continuous year for leisure, business and other purposes not related to employment with pay from within the place visited. Traveling for the purpose of conducting businesses, for education and training, etc., can also be part of tourism. Both foreign visitors (country of residence is other than the Philippines) and domestic visitors (Philippine residents) are covered in the survey.
Tourism activities - encompass all that foreign and domestic visitors do for a trip or while on a trip. It is not restricted to what could be considered as “typical” tourism activities such as sightseeing, sunbathing, visiting site, etc. From an economic point of view, the basic activity of foreign and domestic visitors is consumption, that is, the acquisition of consumption goods and services to satisfy individual or collective needs and wants.
Tourism characteristic products - are goods and services which would cease to exist in meaningful quantity or those for which the level of consumption would be significantly reduced in the absence of visitors (e.g. accommodation services). Activities from which the products were created are termed as tourism characteristic industries.
Tourism connected products - are goods and services that are affected significantly without tourism; or are important to tourism, independent of level of usage of the product by tourists. Similarly, activities from which the products were created are termed as tourism connected industries.
Wireless internet connection (Wi-Fi) - is a trademark of the Wi-Fi Alliance. A Wi-Fi enabled device such as a personal computer, video game console, mobile phone, MP3 player or personal digital assistant can connect to the Internet when within range of a wireless network connected to the Internet. The coverage of one or more interconnected access points which is called a hotspot that can comprise an area as small as a few rooms or as large as many square miles covered by a group of access points with overlapping coverage.