Other service activities industry dominates other community, social and personal service activities sector

1. Based on the preliminary results of the 2006 Census of Philippine Business and Industry conducted nationwide, with 2006 as the reference year, the Philippines had a total of 544 establishments with average total employment (ATE) of 20 and over engaged in other community, social and personal service activities. As shown in Figure 1, other service activities garnered the highest number of establishments at 190 (34.9%). The sporting and other recreational activities ranked second with 170 (31.3%). Sewage and refuse disposal, sanitation and similar activities on the other hand, recorded the lowest number of establishments with only 9.
    

Most establishments are located in National Capital Region

2. On the regional level, National Capital Region (NCR) had the most number of establishments with 270 (49.6%). CALABARZON placed second with 82 establishments while Central Luzon and Central Visayas followed, both with 7.9 percent of the total. MIMAROPA had the least with only 3 establishments (0.6%).
    

Sporting and other recreational industry generates the highest employment

3. Employment in 2006 reached a total of 44,649. Out of this total, 43,700 or 97.9 percent were paid employees while the remaining 949 (2.1%) were working owners and unpaid employees.
    
4. Table 1 shows that the sporting and other recreational industry, had the most number of employees with 20,693 (46.3%). The motion picture, radio, television and other entertainment industry garnered the second place with 13,493 employees (30.2.1%). The least number of employees were engaged in library, archives, museums and other cultural activities with only 509.
    
5. Region wise, NCR was the top employer among regions with 26,285 employees (58.9%). CALABARZON followed with 7,736 (17.3%), while MIMAROPA registered the least with only 62 employees.
    

Sporting and other recreational industry pays the highest compensation

6. The total compensation paid by other community, social and personal service activities sector amounted to Php9.6 billion, an equivalent of Php221.1 thousand average annual compensation. Out of the total, Php9.1 billion (94.6%) comprised the salaries and wages while the remaining Php518 million (5.7%) went to the employer’s contribution to SSS/GSIS and the like.
    
7. By industry group, sporting and other recreational activities paid the highest compensation to its employees amounting to Php4.8 billion or 50.3 percent of the total. Next is the motion picture, radio, television and other entertainment activities with Php3.6 billion.
    

8. Table 2 shows that labor payments in NCR amounted to Php 6.9 billion (71.6%) of compensation nationwide. CALABARZON, which expended around Php931 million, came next. MIMAROPA was the least payer with only Php3.1 million.
    

Motion picture, radio, television and other entertainment employees earn the highest in 2006

9. Motion picture, radio, television and other entertainment employees were the highest earners in 2006 with an average annual compensation of Php290,156. Employees of sporting and other recreational followed next with Php236,057. Sewage and refuse disposal, sanitation and similar activities employees received the lowest average annual remuneration of Php90,865.
    
10. By region, NCR-based workers received the highest average annual compensation of Php264 thousand while employees from MIMAROPA received the least with only Php50.7 thousand. Table A shows the computed indicators.
     

Table A. Annual Compensation per Paid Employee for Private Education with ATE 20 and Over by Region

Total revenue amounts to Php67.8 billion, motion picture, radio, television and other entertainment industry produces the largest

11. Gross revenue earned in 2006 for other community, social and personal service establishments reached Php67.7 billion (Table 1). The motion picture, radio, television and other entertainment industry was the top contributor with revenue of Php33.3 billion or 49.2 percent of the total. Earning the second place is the sporting and other recreational industry with Php29.4 billion (43.5%), while the library, archives, museums and other cultural activities generated least revenue with only Php132 million (0.2%).
     

12. With respect to regions, NCR produced the highest revenue amounting to Php53.6 billion. The least revenue was made by MIMAROPA.
     

Total cost reaches Php39.2 billion, motion picture, radio, television and other entertainment industry spends the highest

13. Costs for operating the industry summed up to Php39.2 billion as shown in Table 1. Motion picture, radio, television and other entertainment industry incurred the highest cost with Php24.8 billion (63.4%) followed by sporting and other recreational activities with Php11.1 billion.
     
14. By region, NCR spent the largest as it incurred Php31.8 billion (81.2%) cost for operating the industry. CALABARZON followed with Php3.8 billion. The least cost was recorded by MIMAROPA with only Php4.6 million.
     

Revenue-cost ratio amounts to Php1.7, sporting and other recreational industry records the highest returns

15. Revenue-cost ratio, the revenue generated per Php1 cost, amounted to Php1.7. Among industries, sporting and other recreational activities recorded the highest with Php2.6 indicating Php2.6 revenue per Php1 cost followed by library, archives, museums and other cultural activities.
     

Value added amounts to Php34.7 billion

16. Value added was estimated at Php34.7 billion. Almost 58.2 percent of the total value added of the sector was contributed by the sporting and other recreational industries.
     

Employees of motion picture, radio, television and other entertainment industry employees are the most productive

17. Employees of motion picture, radio, television and other entertainment industry were the most productive in 2006 in terms of revenue employee with a Php2.5 million revenue per employment, 49.2 percent higher than the national average of Php1.5 million. Library, archives, museums and other cultural industry on the other hand recorded the least with only Php260 thousand.
     
18. Value added per total employment, another measure of labor productivity, was valued at Php778 million, per employee. Among industries, sporting and other recreational activity had the highest average of Php977 million while for motion picture, radio, television and other entertainment industry, it was estimated at Php922 million.
     

Total change in inventories values at Php60 million

19. Change in inventories, defined as the value of ending inventory less the beginning, amounted to negative Php60 million in 2006 as shown in Table 1. Among industries, motion picture, radio, television and other entertainment industry recorded the highest with Php70 million, while sporting and other recreational industry had negative inventories amounting to Php137 million.
     

Gross addition to fixed assets totals Php2 billion

20. Gross addition to fixed assets in 2006 totaled to Php2 billion with the motion picture, radio, television and other entertainment industry recording the highest amount of Php1 billion (51.4%). Library, archives, museums and other cultural industry had the lowest with only Php2.9 million (.1%).
     

Subsidies in 2006 is up by 85 percent

21. Subsidies in 2006 reached Php250 million with the government providing the highest to the motion picture, radio, television and other entertainment industry amounting to Php221 million (88.5%). Sporting and other recreational industry received Php16 million (6.7%).
     

TECHNICAL NOTES

Introduction

The 2006 Census of Philippine Business and Industry (CPBI), conducted in 2007 with 2006 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2006. Particularly, the data from CPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals

The conduct of the CPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940.
 

Scope and Coverage

The 2006 CPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:
 

• Agriculture, hunting and forestry
• Fishing
• Mining and quarrying
• Manufacturing
• Electricity, gas and water
• Construction
• Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods
• Hotels and restaurants
• Transport, storage and communications
• Financial intermediation
• Real estate, renting and business activities
• Education
• Health and social work
• Other community, social and personal service activities.

The scope of the CPBI was confined to "formal sector" only, which consists of the following:
 

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 and over
• Single proprietorship with branches.

Like all other establishment surveys conducted by the NSO, the 2006 CPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."
 

Classification of Establishments

Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.
 

Classification Systems

An establishment is categorized by its economic organization, legal organization, employment size, industrial classification, and geographic location.

Economic Organization relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
 

• Single establishment is an one which has neither branch nor main office
• Branch only is an establishment which has a separate main office located elsewhere.
• Establishment and main office, both located in the same address and with branch/es elsewhere.
• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise.
• Ancillary unit other than Main Office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments. Examples are warehouse of plants or wholesale establishments, repair shops or garage or terminals of transport establishments.

The Legal Organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
 

• Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise.
• Partnership 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 is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government.
• Private Corporation is a corporation organized by private persons.
• Cooperative - the establishment name includes words such as Cooperative or COOP

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

The size of the establishment is determined by its average total employment (ATE). The following are the employment size classification used in the 2006 CPBI:

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines

The geographic domains of the 2006 CPBI for establishments with average total employment (ATE) of 20 and over are the provinces, independent component cities, chartered cities and highly urbanized cities and municipalities. On the other hand, the geographic domains for establishments with ATE of less than 20 are the regions

Hence, the samples of the 2006 CPBI with ATE 20 and over shall provide data for 17 administrative regions, 81 provinces, 39 cities and municipalities. For samples with ATE less than 20, the data that will be presented is limited only for regional levels.

Response Rate

A total of 563 out of 618 or 91.1 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. However, the effective response rate is 88 percent or 544 out of the total workload.

CONCEPTS AND DEFINITIONS OF TERMS

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.

Employment is the number of persons who worked in or for this establishment as of November 15, 2005. The concept of employment as of the payroll November 15 was adopted for the first time in the 2002 ASPBI (reference year 2001).

Average total employment is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.

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, 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.

Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.

Book value of fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

Gross Additions to Fixed Assets is the sum of costs of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

Value added represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.

Inventories refer to the stocks of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser’s price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

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 or production and to protect it against competition.