Majority of establishments are engaged in gambling and betting activities
Preliminary results of the 2013 Annual Survey of Philippine Business and Industry showed that a total of 233 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Arts, Entertainment and Recreation activities. As shown in Figure 1, gambling and betting activities garnered the highest number of establishments at 83 (35.6%). Other amusement and recreation activities ranked second with 63 establishments (27.0%). On the other hand, libraries, archives, museums and other cultural activities recorded the lowest number of establishments with 9 establishments (3.9%).
Most establishments are located in the National Capital Region (NCR)
By geographic location, National Capital Region (NCR) had the most number of establishments engaged in the sector with 84 (36.1%). CALABARZON and Central Luzon followed with 52 (22.3%) and 23 (9.9%), respectively.
Gambling and betting activities posts the highest employment
A total of 15,802 workers were employed in sector in 2013. Out of the total employment, 14,931 or 94.5 percent were paid employees while the remaining 5.5 percent or 871 were unpaid workers.
Figure 2 shows that the gambling and betting activities, having the largest share in terms of number of establishments, had the most number of employees with 5,990 (37.9%). Other amusement and recreation activities garnered the second place with 3,976 employees (25.2%). The least number of employees were engaged in libraries, archives, museums and other cultural activities with 536 (3.4%).
Region wise, NCR was the top employer in the sector with 6,680 employees (42.3%). CALABARZON and Central Luzon followed next with 4,117 (26.1%), and 1,657 (10.5%), respectively.
Average Annual Compensation is at PHP300 thoussand
The total compensation paid by the sector amounted to PHP4.5 billion, an equivalent of PHP299,577 average annual compensation per paid employee.
By industry group, gambling and betting activities paid the highest compensation to its employees amounting to PHP2.5 billion or 56.8 percent. Sports activities followed with PHP781.0 million (17.5%) while the least compensation was paid by libraries, archives, museums and other cultural activities with PHP205.4 million (4.6%).
At the regional level, labor payments amounting to PHP2.7 billion or 60.5 percent was paid by establishments in NCR. Employers in CALABARZON disbursed PHP1.0 billion (22.5%) to its workers while Central Luzon paid PHP338.4 million (7.6%).
Employees in gambling and betting activities earn the highest in 2013
Employees engaged in gambling and betting activities were the highest earners in 2013 with an average annual compensation of PHP424.7 thousand per paid employee. Employees of creative, arts and entertainment activities came in second with PHP397.7 thousand. On the other hand, workers in other amusement and recreation activities received the lowest average annual remuneration of PHP164.3 thousand.
By region, employees from NCR received the highest average annual compensation of PHP416.3 thousand per paid employee, followed by CALABARZON with PHP257.6 thousand. Central Luzon ranked third with an average annual compensation of PHP224.0 thousand. Table 4 shows the average annual compensation per paid employee by region.
Total income amounts to PHP28.5 billion; gambling and betting activities produce the largest
Total income earned by the sector in 2013 reached PHP28.5 billion. Gambling and betting activities was the top contributor with income of PHP18.6 billion or 65.0 percent. Other amusement and recreation activities gained PHP4.1 billion (14.4%), while the creative, arts and entertainment activities generated the least income with PHP758.1 million (2.7%).
More than half of the total income of the sector was produced in NCR amounting to PHP15.0 billion (52.5%). CALABARZON followed next with PHP7.4 billion or about 25.8 percent. Completing the top three regions was Central Luzon with PHP2.4 billion or 8.6 percent of the total income.
Total expense reaches PHP23.0 billion
Total operating expense summed up to about PHP23.0 billion. Gambling and betting activities incurred the highest expense with PHP14.6 billion (63.6%) followed by sports activities with payments of PHP3.3 billion (14.4%). Creative, arts and entertainment activities spent the least with PHP853.5 million (3.7%).
Across regions, NCR spent the largest as it incurred PHP12.9 billion (56.2%) of the total expense. CALABARZON and Central Luzon followed with PHP5.2 billion (22.7%) and about PHP1.4 billion or 6.2 percent, respectively.
Income-expense ratio amounts to 1.24
Income-expense ratio, the income generated per peso sent, amounted to 1.24. Libraries, archives, museums and other cultural activities recorded the highest with 1.62 followed by other amusement and recreation activities with 1.29. Creative, arts and entertainment activities recorded the least income-expense ratio of 0.89.
Value added amounts to PHP13.1 billion
Value added for the sector was estimated at PHP13.1 billion. Gambling and betting activities contributed PHP8.0 billion or 61.2 percent to the total value added of the sector. Other amusement and recreation activities placed second with PHP2.0 billion or 15.6 percent while sports activities followed with PHP1.7 billion or 12.8 percent. The least value added was accounted by creative, arts and entertainment activities with PHP291.6 million (2.2%).
Employees of libraries, archives, museums and other cultural activities are most labor productive
Value added per worker, a measure of labor productivity, was valued at PHP830.5 thousand. Among industries, employees of libraries, archives, museums and other cultural activities had the highest average with PHP2.0 million followed by gambling and betting activities with PHP1.3 million while the least labor productive industry was recorded by creative, arts and entertainment activities, at PHP212.4 thousand.
Gross additions to fixed assets totals PHP1.2 billion
Gross additions to fixed assets in 2013 totaled to PHP1.2 billion with the gambling and betting activities industry recording the highest amount of PHP377.3 million (30.9%). Libraries, archives, museums and other cultural activities had PHP310.6 million (25.5%) while the least amount of gross additions to fixed assets was recorded by creative, arts and entertainment activities with PHP115.6 million (9.5%).
Total change in inventories stands at PHP18.0 million
Change in inventories, defined as the value of ending less the beginning inventory, amounted to PHP18.0 thousand in 2013. Among industries, sports activities industry recorded the highest change in inventories with PHP11.3 thousand (62.6%), while gambling and betting activities followed with PHP9.3 thousand (51.7%). Other amusement and recreation activities and creative, arts and entertainment activities recorded negative change in inventories.
Subsidies in 2013 amounts to PHP213.1 million
Subsidies received from the government in 2013 reached PHP213.1 million. Creative, arts and entertainment activities was granted by the government the largest amounting to PHP202.0 million (94.8%). Libraries, archives, museums and other cultural activities did not received any subsidy from the government in 2013.
Sales from e-commerce post PHP7.3 million
Sales from e-commerce transaction were recorded only by creative, arts and entertainment activities amounting to PHP7.3 million. The rest of the industries did not have any e-commerce transaction.
This Special Release presents the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for Arts, Entertainment and Recreation sector for establishments with total employment of 20 and over for the formal sector of the economy.
The 2013 Annual Survey of Philippine Business and Industry (ASPBI) is a forerunner of the 2010 ASPBI. It aims to collect and generate information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2013.
Beginning with the 2013 ASPBI the data processing of the survey will be decentralized to the Provincial Offices as the provinces are near the establishments which are data source for this survey.
The conduct of the ASPBI is governed by authority of the following legislative acts and presidential directives:
- Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities). It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.
Section 27 of Republic Act No 10625 states that:
"... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) year imprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthful and complete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against the responsible officer, director, manager, and/or agent of said corporation. In addition, such erring corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."
Confidenciality of Information
- Republic Act 10625 (Philippine Statistical Act of 2013)
Section 27 of RA 10625 states that:
"... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year, subject to the degree of breech of information..."
- Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and employees) dated February 20, 1989.
Section 7 of RA 6713 states that:
"... (c) Disclosure and/or misuse of confidential informatiom. Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either: (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."
Scope and Coverage
The 2013 ASPBI was a nationwide undertaking of establishments confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2013 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 2013 List of Establishments (LE), the frame used to draw the sample establishments for the 2013 ASPBI, registered a total of 941,000 establishments in operation nationwide in 2013. Out of this number, 72 percent or 678,000 establishments belong to the informal sector and only 28 percent or 263,000 establishments made up the formal sector.
Listed below are the 18 economic sectors within the scope of the 2013 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 Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2013 ASPBI was 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 organizations (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
- Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
- Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
- Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
- Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
- Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal Organization (LO). This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
- Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
- Partnership (LO=2) 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 (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
- Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
- Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
- Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
- Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
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.
Size (SZ) of the Unit of Enumeration 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/enterprise. 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.
The following are the size codes and corresponding total employment used in the 2013 ASPBI:
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, 2013 was used for the 2013 ASPBI.
Selection of sample establishment for the 2013 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.
Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)
The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is
- i = 1, 2, 3,…,nphs establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region
- s = denotes the non-certainty employment strata in TE of 20 and over
- h = denotes for industry domain
- p = denotes for 17 regions
- xphsi = value of the ithestablishment in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- Wphsi = weight of the ithestablishment in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- Nphs = total number of establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- nphs = total number of sampled establishments in sthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
TThe estimate of the total of a characteristic for the non-certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is
- i = 1, 2, 3,…,mphc establishments in cthnon-certainty stratum in TE of 20 and over in hth industry domain in the pth region
- c = denotes the certainty stratum in TE of 20 and over
- h = denotes for industry domain
- p = denotes for 17 regions
- xphcj = value of the jthestablishment in cthnon-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- mphc = total number of sampled establishment in cthcertainty stratum in TE of 20 and over in hth industry domain in the hth industry domain in the pth region.
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 estimated for all employment strata (non-certainty and certainty) in the same industry domain,
- h = denotes for industry domain
- s = 1, strata of TE 20-29, and 2, strata of TE 50-99, of the non-certainty employment strata in hth industry domain in the pth region.
- c = 1, 2,..., Kph certainty stratum in TE of 20 and over in hth industry domain in the pth region.
- kphcj = total number of certainty stratum in TE of 20 and over in hth industry domain in the pth region
- p= denotes for 17 regions.
At the national level estimate of the total of a characteristic for each industry domain was obtained by aggregating 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, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight is
- W1phsi = is the adjusted weight for non-certainty stratum
- Nphs = total number of establishments in sth non-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
- n1phs= total number of responding establishments in sth non-certainty employment strata in TE of 20 and over in hth industry domain in the pth region.
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 2013 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.
Total response rate for Arts, Entertainment and Recreaton sector was 82.5 percent (184 out of 223 establishments). These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, five responded online and none accomplished e-questionnaire. Others convert accomplished questionnaires to portable document format (PDF) and submit through e-mail.
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, 2013.
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 paid by and under the control of the establishment. Included 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, homeworkers and workers receiving pure commissions only.
Unpaid workersincludes 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.
Compensation includes 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, Phil Health, 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 refers to cash received and receivables for goods/products and by-products sold and services rendered.
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 incured by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Valued added is gross output less intermediate input. Gross output for Arts, Entertainment and Recreation activities is the sum of the total revenue (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 cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of 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 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.
Source: Philippine Statistics Authority - National Statistics Office