Other amusement and recreation activities industry has the highest number of establishments
The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 3,068 establishments in the formal sector of the economy were engaged in arts, entertainment and recreation activities in 2017. This number represents a decrease of 11.3 percent compared with the 3,459 establishments in 2016.
Among the industries, other amusement and recreation activities had the highest number of establishments of 1,337 or 43.6 percent of the total. Gambling and betting activities ranked second with 991 establishments or 32.3 percent while sports activities ranked third with 583 establishments or 19.0 percent of the total.
Figure 1 shows the percentage distribution of the number of establishments for all arts, entertainment and recreation establishments by industry group in 2017.
Gambling and betting activities industry employs the highest number of workers
The sector employed a total of 65,840 workers in 2017, a decrease of 0.8 percent compared with the 66,399 workers in 2016. Of the total employment, 98.1 percent consisted of paid employees and the rest were working owners and unpaid workers.
By industry group, gambling and betting activities employed the highest number of workers of 35,868 or 55.5 percent of the total employment. Other amusement and recreation activities followed with 17,439 workers (26.5%) and sports activities with 9,371 workers (14.2%).
Figure 2 shows the distribution of employment for all establishments for the sector by industry group in 2017.
The average number of workers per establishment was recorded at 21 in 2017. Gambling and betting activities recorded the highest average of 36 workers per establishment. On the other hand, other amusement and recreation activities recorded the lowest average of 13 workers per establishment.
Gambling and betting activities industry pays the highest average annual compensation
In 2017, the total compensation paid to employees of the sector amounted to PHP24.9 billion, translating to an average annual compensation of PHP386.3 thousand per paid employee. Compared with the average annual pay of PHP431.4 thousand per paid employee in 2016, the average pay in 2017 decreased by 10.5 percent.
Among the industries, gambling and betting activities paid the highest average annual compensation of PHP561.3 thousand per paid employee. This was followed by sports activities and libraries, archives, museums and other cultural activities, paying an average annual compensation of PHP215.4 thousand and PHP191.4 thousand per paid employee, respectively.
Figure 3 displays the average annual compensation of paid employees of the sector in 2017.
Gambling and betting activities industry contributes the biggest share in income and expense
The gross income generated by the sector in 2017 totaled to PHP198.7 billion, a decrease of 23.4 percent from the PHP259.3 billion in 2016. Gambling and betting activities, the only industry which generated more than a hundred billion pesos of income, shared PHP173.8 billion or 87.4 percent of the total income. The income generated by the other industries of the sector in 2017 were distributed as follows:
• Other amusement and recreation activities, PHP14.0 billion (7.0%)
• Sports activities, PHP8.4 billion (4.2%)
• Creative, arts and entertainment activities, PHP1.3 billion (0.7%)
• Libraries, archives, museums and other cultural activities, PHP1.2 billion (0.6%)
Meanwhile, the total expense incurred by the sector amounted to PHP167.5 billion. This figure was lower by 19.3 percent than the reported expense of PHP207.4 billion in 2016. Among the industries, gambling and betting activities incurred the highest expense of PHP145.4 billion or 86.9 percent of the total. The expenses incurred by the other industries of the sector in 2017 were distributed as follows:
• Other amusement and recreation activities, PHP11.7 billion (7.0%)
• Sports activities, PHP7.7 billion (4.6%)
• Creative, arts and entertainment activities, PHP1.3 billion (0.8%)
• Libraries, archives, museums and other cultural activities, PHP1.2 billion (0.7%)
The income generated per peso expense of the sector stood at 1.19. This was lower by 4.8 percent from the income per peso expense of 1.25 in 2016. By industry group, gambling and betting activities, and other amusement and recreation activities recorded the highest income per peso expense, each with 1.19. This was followed by sports activities and libraries, archives, museums and other cultural activities with income per peso expense of 1.08 and 1.04, respectively.
Value added amounts to PHP100.8 billion
Value added generated by the sector was estimated at PHP100.8 billion in 2017, a decrease of 16.5 percent compared with the PHP120.7 billion value added in 2016.
Gambling and betting activities generated the highest value added of PHP89.7 billion or 89.0 percent of the total, while creative, arts and entertainment activities had the least with value added of PHP374.8 million (0.4%).
Labor productivity, which is the ratio of value added to employment, was estimated at PHP1,531.4 thousand per worker. This figure was lower by 15.8 percent than the PHP1,818.2 thousand labor productivity recorded in 2016. In 2017, gambling and betting activities led the sector with a labor productivity of PHP2,500.6 thousand per worker. On the other hand, creative, arts and entertainment activities registered the lowest labor productivity of PHP186.3 thousand per worker.
Figure 4 shows the labor productivity of the five industries of the sector in 2017.
Sales from e-commerce reaches PHP2.6 billion
Sales from e-commerce transactions for the sector in 2017 amounted to PHP2.6 billion, higher by 6.1 percent compared with the PHP2.4 billion sales in 2016.
Gambling and betting activities industry recorded the highest contribution to e-commerce sales amounting to PHP2.5 billion or 98.6 percent of the total. The remaining amount was contributed by other amusement and recreation activities (PHP24.9 million) and libraries, archives, museums and other cultural activities (PHP12.2 million).
Gross additions to tangible fixed assets reach PHP44.3 billion
Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by all establishments of the sector was valued at PHP44.3 billion in 2017. This amount was lower by 37.3 percent from the PHP70.7 billion in 2016.
Gambling and betting activities had the highest contribution to gross additions to fixed assets of PHP42.0 billion (94.8%).
Government grants PHP850.5 million subsidy
Total subsidies granted by the government for the sector in 2017 amounted to PHP850.5 million, higher by 51.3 percent from the PHP562.1 million subsidy in 2016. This subsidy was distributed to creative, arts, and entertainment activities (PHP847.6 million), other amusement and recreation activities (PHP1.8 million) and libraries, archives, museums and other cultural activities (PHP1.0 million).
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all Arts, Entertainment and Recreation establishments (sector R).
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.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.
Data are presented by industry group or 3-digit level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national level.
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 establishment frame or 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 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 NSCB Resolution No. 2 Series 2010 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.
The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable. The selection of sample establishments is done independently by stratum using systematic sampling.
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 is
s = 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
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
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 domain
b. Certainty Stratum
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 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.
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 for the non-certainty employment strata in an industry domain in each region,
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 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 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries except J61902, Business Process Management (BPM) industries, Government Owned and Controlled Corporations (GOCCs) and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1, 2,...18 regions (geographic domains)
Xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain within 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 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,
where dp denotes the industry domains in each region
National level estimate of the characteristic by industry domain are obtained by aggregating separately the estimates 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 factors (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
Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
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 for all arts, entertainment and recreation establishments was 87.9 percent (340 out of 387 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, nine establishments responded online.
Reports of the remaining non-reporting establishments were taken from financial statements from the Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment’s report, 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 Definition 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-commerce refers to 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.
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.
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 refers to the 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 addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or Revenue refers to 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 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.
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.
Total employment is the number of persons who worked in for the establishment as of 15 November 2017.
Value added is gross output less intermediate input. Gross output for Arts, Entertainment and Recreation 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.