2014 Annual Survey of Philippine Business and Industry (ASPBI) - Arts, Entertainment and Recreation Sector : Final Results

Reference Number: 

2017-068

Release Date: 

Thursday, March 16, 2017

Other amusement and recreation activities dominates arts, entertainment and recreation sector

Based on the final results of the 2014 Annual Survey of Philippine Business and Industry, there were 3,108 establishments in the formal sector of the economy engaged in arts, entertainment and recreation sector.  A total of 2,822 establishments or 90.8 percent had a total employment (TE) of less than 20 while 286 establishments or 9.2 percent had TE of 20 and over.

Among industries, other amusement and recreation activities topped the sector with 1,306 establishments or 42.0 percent of the total.  This was followed by gambling and betting activities with 1,213 (39.0%) establishments.  Libraries, archives, museums and other cultural activities had the least number of establishments with 32 or 1.0 percent of the total. Figure 1 shows the percentage distribution of establishments by industry group in 2014.

 

Gambling and betting activity generates the highest employment

Employment for the sector reached a total of 68,936 in 2014.  Paid employees accounted for 98.0 percent (67,564) and the remaining 1,372 or 2.0 percent were working owners and unpaid workers.  More than half (69.5%) or 47,895 workers were hired by establishment with TE of 20 and over and the remaining 21,041 (30.5%) workers worked for establishments with TE of less than 20.

Among industries, gambling and betting activities had the highest number of employees with 41,979 (60.9%).  Other amusement and recreation activities industry ranked second with 16,204 (23.5%) while sports activities industry was third with 7,629 establishments or 11.1 percent.  Distribution of employment by industry group for the sector is shown in Figure 2.

 

Gambling and betting activity pays the highest compensation

Total compensation paid by arts, entertainment and recreation sector amounted to PHP23.2 billion, translating to an average annual compensation of PHP343,381 per employee.  For establishment with TE of 20 and over, the total compensation reached PHP20.3 billion amounting to an average annual compensation of PHP427.4 thousand per employee.  On the other hand, establishments with TE of less than 20 paid only PHP2.9 billion or an equivalent of PHP146.0 thousand per employee.

Across industry group, gambling and betting activities paid the highest average annual compensation of PHP455.5 thousand per employee, followed by sports activities with PHP204.1 thousand.  On the other hand, establishments of other amusement and recreation activities had the lowest average annual pay of PHP144.8 thousand per employee.  Figure 3 shows the average annual compensation per paid employee for arts, entertainment and recreation activities sector by industry group.

 

Total income amounts to PHP139.8 billion in 2014

Gross income earned by arts, entertainment and recreation sector reached PHP139.8 billion.  More than 86 percent of the gross income was contributed by establishments with TE of 20 and over amounting to PHP120.9 billion.  The remaining 13.5 percent was generated by establishment with TE of less than 20.

Gambling and betting activities industry was the top contributor with income of PHP118.9 billion or 85.1 percent of the total.  This was followed by other amusement and recreation activities industry with PHP10.3 billion (7.4%).  Libraries, archives, museums and other cultural activities industry had the least income of PHP1.0 billion (0.7%).

Total expense of the sector reaches PHP121.2 billion

Total expense incurred by the sector summed up to PHP121.2 billion.  Gambling and betting activities spent the highest with PHP101.8 billion (84.0%), followed by other amusement and recreation activities with payments of PHP9.2 billion (7.6%).  Libraries, archives, museums and other cultural activities spent the least with PHP954.1 million (0.7%).  Figure 4 shows the distribution of income and expense of the sector by industry group in 2014.

 

Income-expense ratio recorded at 1.15

The income generated per peso expense was computed at 1.15.  This means that every peso expense incurred by the sector during it’s operation in 2014, a PHP1.15 income was generated.  Among industries, gambling and betting activities recorded the highest ratio of 1.17.  Sports activities industry recorded the lowest ratio with 1.03 income per peso expense.

Value added reaches PHP66.3 billion

Value added for the sector was estimated at PHP66.3 billion in 2014.  For establishments with TE of 20 and over, value added was PHP58.6 billion while establishments with TE less than 20, value added was PHP7.7 billion.

Gambling and betting activities contributed PHP57.7 billion or 87.2 percent of the total value added of the sector.  Other amusement and recreation activities had a total value added of PHP4.4 billion (6.6%) while sports activities had a share of PHP3.0 billion or 4.6 percent.  The least value added was accounted for by libraries, archives, museums and other cultural activities with PHP434.4 million (0.7%).  Figure 5 shows the distribution of value added for arts, entertainment and recreation activities by industry group in 2014.

 

Employees of gambling and betting activities were the most productive in 2014

Value added per worker, a measure of labor productivity, was estimated at PHP961.0 thousand per worker in 2014.  The highest labor productivity among industries was recorded by gambling and betting activities valued at PHP1.4 million per worker.  Creative, arts and entertainment activities produced the lowest with a value of PHP267.4 thousand per worker.

Gross addition to fixed assets totals PHP19.7 billion

Gross addition to fixed assets in 2014 totaled PHP19.7 billion.  Establishments with TE of 20 over recorded PHP19.1 billion while establishments with TE of less than 20 reached PHP649.1 million.

Among industries, gambling and betting activities industry recorded the highest amount of PHP17.9 billion (90.9%).  This was followed by sports activities industry with acquired gross additions of PHP1.2 billion (6.2%).  Creative, arts and entertainment activities recorded the least of PHP17.2 million or 0.1 percent.

Gambling and betting activities posts the highest change in inventoriess

Change in inventories, defined as the value of ending less the beginning inventory, amounted to PHP71.3 million in 2014.  Change in inventories for establishments with TE 20 and over recorded PHP307.2 million.

Among industries, gambling and betting activities recorded the highest change in inventories which amounted to PHP298.8 million.  In addition to gambling and betting activities industry, sports activities and creative, arts and entertainment activities industries posted a positive inventories of PHP11.7 million and PHP280.0 thousand, respectively.

Subsidies in 2014 amounts to PHP493.2 million

Subsidies received from the government by the sector in 2014 reached PHP493.2 million.  Gambling and betting activities received the largest subsidy from the government amounting to PHP288.8 million (58.6%).  All other industries received subsidies from the government with amusement and recreation activities industry as the recipient of the least amount of PHP576.0 thousand.

Sales from E-commerce posts PHP2.6 billion

Sales from E-commerce transaction was recorded at PHP2.6 billion. Gambling and betting activities had the most sales accounting for 97.2 percent of the total.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Arts, Entertainment and Recreation Activities sector for all establishments in the formal sector of the economy.

The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA).  Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for year 2014.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014..

Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC). .

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru email..

Legal Authority

The conduct of the 2014 ASPBI 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 ASPBI is 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

Hence, the 2014 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).

The initial estimate of the 2014 LE shows that there are about 944,500 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 231,000 (87%) comprise the establishment frame.

Listed below are the 18 economic sectors within the scope of the 2014 ASPBI classified under the 2009 PSIC.

  • 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 and Maintenance of Motor Vehicles, 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)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2014 ASPBI is 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) refers to the organizational structure or role of the establishment in the organization.  

Legal Organization (LO) refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment. 

Industrial Classification 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 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 is 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 December 31, 2014 was used for the 2014 ASPBI.

Sampling Design

Selection of sample establishment for the 2014 ASPBI 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.

Estimation Procedure

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic  for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

  •    = denotes the non-certainty employment strata in TE of less than 20
  •  Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
  •       =  1,2,3..., ns establishments
  •  Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

 

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

b. Certainty Stratum

    The total of a characteristic  for the certainty employment stratum in the Cth industry domain was

where:

  •    = 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  for the industry domain was obtain by                  aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 

     where  d  denotes the industry domain.

For Establishments with TE of 20 and Over

a.   Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections G, H, I, J, K, L, M, N, P, Q, R and S.  

      The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for selected industry                    domain in each region was as

where:

  •  s     = denotes the non-certainty employment strata in TE 20 and over
  •  p     = 1,2,...,17 regions geographic domains
  •  xspj  = 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..., nsp establishments
  •  Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

  •  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  

      The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was

where:

  •  c    = denotes the non-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 in an industry domain within each region
  •      = 1,2,3..., mcp establishment  
  •  mcp number of establishments in the certainty strata in TE of 20 and over in an industry domain in each region

 

c.   Total Estimate for TE of 20 and Over  

      The estimate of the total of a characteristic for the industry domain in each (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry 

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp)  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

 

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was

where:

  •  Ns   = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
  •  n's   = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

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

where:

  •  Nsp  = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
  •  n'sp  = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

Questionaire Design

The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

The sample establishments responded also to the survey through the use of Web-based version of the 2014 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

Field operations of the 2014 ASPBI were scheduled from April to July 2015.

Total response rate for arts, entertainment and recreation activities sector was 76.3 percent (424 out of 556 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 15 establishments responded online.

 

Concepts and Definitions of Terms

 

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Total Employment is the number of persons who worked in for the establishment as of November 15, 2014.

Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment.  Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike.  Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay.  Excluded are silent or inactive business partners.

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s 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 includes 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.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable.  Valuation should be at purchaser 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.

Expense refers to 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.

Value Added is gross output less intermediate input. Gross output is equal to the sum of total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account, and change in inventory. Intermediate input equal to the sum of the following expense items: materials and supplies; fuels, lubricants, oils and greases; electricity and water; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other expense; less change in inventory of materials and supplies; fuels, lubricants, oils and greases; and goods for resale.

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

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

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.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

  
 

Attachment: 

Tags: 

Industry: 

Health and Social Work

Industry 2009 PSIC: 

Arts, Entertainment and Recreation