2016 Annual Survey of Philippine Business and Industry (ASPBI) - Arts, Entertainment and Recreation Sector For All Establishments: Final Results

Reference Number: 2019-002
Release Date: 16 January 2019

Majority of establishments are engaged in gambling and betting activities

The final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) recorded a total of 3,459 establishments in the formal sector of the economy that were engaged in arts, entertainment and recreation activities.

Across industries, gambling and betting activities led the sector with 1,354 establishments or 39.1 percent of the total establishments in the sector. Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs, etc. followed with 725 establishments or 21.0 percent. Other amusement and recreation activities, n.e.c. came third with 579 establishments or 16.7 percent.

Figure 1 illustrates the percentage distribution of establishments for the sector by industry sub-class in 2016.

Figure 1

Most employees work for gambling and betting activities

Total employment for all arts, entertainment and recreation establishments in 2016 reached 66,399. Of the total employment, 65,037 or 97.9 percent were paid employees and the remaining were working owners and unpaid workers.

Among industry sub-classes, gambling and betting activities hired the most number of workers with 40,476 or 61.0 percent of the total. This was followed far behind by operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs, etc., and other amusement and recreation activities, n.e.c. with 6,786 workers (10.2%) and 5,375 workers (8.1%), respectively.

Figure 2 presents the distribution of employment for the sector by industry sub-class in 2016.

Figure 2

In 2016, the sector posted an average employment of 19 workers per establishment. Of the 17 industry sub-classes, the following surpassed the national average:

  • Operation of concert and theatre halls and other arts facilities, 40 workers per establishment
  • Activities of sports clubs, 34 workers per establishment
  • Concerts and opera or dance production, 30 workers per establishment
  • Gambling and betting activities, 30 workers per establishment
  • Botanical and zoological gardens and nature reserves activities, 27 workers per establishment

Gambling and betting activities industry pays PHP23.9 billion for compensation of employees

Total compensation paid by the sector in 2016 totalled PHP28.1 billion, translating to an average annual compensation of PHP431.4 thousand per employee.

By industry sub-class, gambling and betting activities provided the highest compensation of PHP23.9 billion or 85.1 percent of the total compensation for the sector. Other industries, which paid more than half billion pesos of compensation were as follows:

  • Activities of sports clubs, PHP994.9 million
  • Other amusement and recreation activities, n.e.c., PHP917.2 million
  • Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., PHP741.9 million
  • Activities of amusement parks and theme parks, PHP667.2 million

Employees of gambling and betting activities received the highest average annual compensation of PHP590.0 thousand per employee. This was followed by employees of museum activities and preservation of historical sites and buildings receiving PHP535.6 thousand per employee. Ranked third were employees of operation of concert and theatre halls and other arts facilities with an average annual compensation of PHP459.6 thousand per employee. Employees of concerts and opera or dance production, on the other hand, were the least earner with an average annual compensation of PHP10.8 thousand per employee.

Figure 3 shows the average annual compensation per employee of the five leading industries for the sector in 2016.

Figure 3

Gambling and betting activities industry leads the sector in terms of income and expense

The sector generated a total income of PHP259.3 billion in 2016. Among industries, gambling and betting activities was the only industry which earned more than a hundred billion pesos, amounting to PHP186.7 billion or 72.0 percent of the total income for the sector. Other industries which earned more than a billion pesos in 2016 were as follows:

  • Other amusement and recreation activities, n.e.c., PHP55.1 billion
  • Activities of sports clubs, PHP5.2 billion
  • Activities of amusement parks and theme parks, PHP3.2 billion
  • Operation of recreation parks, beaches, including renting of facilities such as bath houses, lockers, chairs etc., PHP2.6 billion
  • Operation of concert and theatre halls and other arts facilities, PHP2.3 billion
  • Operation of sports facilities, PHP1.9 billion

On the other hand, total expense incurred from business operations of establishments in 2016 amounted to PHP207.4 billion. Among industries, gambling and betting activities spent the highest, amounting to PHP155.2 billion or 74.8 percent of the total expense. Other industries, which spent more than a billion pesos in 2016 were as follows:

  • Other amusement and recreation activities, n.e.c., PHP36.1 billion
  • Activities of sports clubs, PHP4.6 billion
  • Operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., PHP2.6 billion
  • Activities of amusement parks and theme parks, PHP2.6 billion
  • Operation of concert and theatre halls and other arts facilities, PHP2.4 billion
  • Operation of sports facilities, PHP1.8 billion

Shown in Figure 4 are the five leading industries for the sector in terms of income and expense in 2016.

Figure 4

Income-expense ratio stands at 1.25

The income generated per peso expense for arts, entertainment and recreation sector stood at 1.25 in 2016. This means that for every peso spent, a corresponding income of PHP1.25 was generated.

At the industry level, three exceeded the national average income per expense ratio. These include other amusement and recreation activities, n.e.c., museum activities and preservation of historical sites and buildings, and operation of ballrooms, discotheques (disco’s) with income and expense ratios of 1.53 , 1.43 and 1.26, respectively.

Gambling and betting activities industry records the highest value added

In 2016, the value added generated by the sector was estimated at PHP120.7 billion. Gambling and betting activities reported the highest value added of PHP89.8 billion or 74.4 percent of the total value added. Other industries with more than a billion pesos value added were as follows:

  • Other amusement and recreation activities, n.e.c., PHP23.7 billion (19.6%)
  • Activities of sports clubs, PHP2.8 billion (2.3%)
  • Activities of amusement parks and theme parks, PHP1.7 billion (1.4%)

Other amusement and recreation activities, n.e.c. industry registers the highest labor productivity

Labor productivity (ratio of value added per total employment) for the sector was estimated at PHP1.8 million per worker in 2016.

Other amusement and recreation activities, n.e.c. led the sector in terms of labor productivity with PHP4.4 million per worker. Gambling and betting activities followed with PHP2.2 million per worker. Museum activities and preservation of historical sites and buildings occupied the third post with PHP1.9 million per worker. Concerts and opera or dance production, on the other hand, registered the lowest labor productivity of PHP17.1 thousand per worker.

Figure 5 presents the top five industries in terms of labor productivity in 2016.

Figure 5

Gross additions to tangible fixed assets reach PHP70.7 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector was valued at PHP70.7 billion in 2016.

Gambling and betting activities, and other amusement and recreation activities, n.e.c. were the two industries with highest shares in gross additions to fixed assets, amounting to PHP56.4 billion (79.8%) and PHP12.3 billion (17.4%), respectively.

Total change in inventories amounts to PHP1.4 billion

Change in inventories, defined as the value of ending less beginning inventory, for the sector reached PHP1.4 billion in 2016.

Among industries, other amusement and recreation activities, n.e.c. recorded the highest change in inventories amounting to PHP1.1 billion. Three other industries which registered more than a million pesos worth of change in inventories were gambling and betting activities (PHP296.7 million), operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., (PHP7.9 million) and live theatrical presentations and other stage productions (PHP1.3 million).

Government grants PHP562.1 million subsidy

Total subsidies granted by the government for the sector in 2016 amounted to PHP562.1 million. This amount was distributed to operation of concert and theatre halls and other arts facilities (PHP561.8 million) and operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., (PHP323.0 thousand).

Sales from e-commerce transactions reach PHP2.4 billion

In 2016, the sector generated a total sales of PHP2.4 billion from e-commerce transactions. Gambling and betting activities accounted for 98.7 percent of the total sales from e-commerce transactions worth PHP2.4 billion. Other industries, which reported sales from e-commerce transactions in 2016 were the following:

  • operation of recreation parks, beaches, including renting of facilities such as bathhouses, lockers, chairs etc., PHP24.3 million
  • museum activities and preservation of historical sites and buildings, PHP6.7 million
  • botanical and zoological gardens and nature reserves activities, PHP817.0 thousand

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2016 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 2016.

The survey was conducted nationwide in 2017 with the year 2016 as the reference period, except for employment data which is 15 November 2016.

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

Data are presented by industry-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national level.

Legal Authority

The conduct of the 2016 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 2016 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 partnerships
  •  Cooperatives and foundations
  •  Single proprietorship with employment of 10 and over
  •  Single proprietorship with branches

Hence, the 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.64% of the total establishments) belong to the formal sector of which 255,403 (86.7%) comprised the frame of the survey. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2016 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 PSA Resolution No. 1 Series 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 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 2016 was used for the 2016 ASPBI.

Sampling Design

The 2016 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.

 

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 stratum TE less than 20 in the sth industry domain is

Formula 1

where:

      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

 

Formula 2

 

   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

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

Formula 3

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 is obtained by aggregating the estimates for all employment strata  (non-certainty and certainty) in the same industry domain. That is,

 Formula 3

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 Formula  for the non-certainty employment strata in an industry domain in each region,

Formula 4

 

where:

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

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = value of the jthestablishment 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                                                                                                                                                                                      

Formula 5

   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)

       The total of characteristics Formula for the certainty employment stratum in an industry domain in each region

Formula 6

where:

       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  Formulafor the industry domain in each region (geopraphic domain) is obtained by aggregating the estimates for all employment strata  (non-certainty and certainty) in the same industry domain,

 Formula 7

where d denotes the industry domains and p refers to region

National level estimate of the characteristic by industry domain are 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 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

Formula 8

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

Formula 8

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 sample establishments under Arts, entertainment and recreation sector was 86.2 percent (313 out of 363 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, five establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2016.

Limitation of Data

The survey covers only the formal sector of the economy.

Concepts and Definitions of Terms

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.

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 15 November 2016.

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 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.

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  is 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.

E-commerce is 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.

Expense is 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 for Arts, Entertainment and Recreation sector is the sum of the 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 inventories. Intermediate input is equal to 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.

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

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 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.

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.
 

See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.

 

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