Other amusement and recreation activities industry led the sector in terms of the total number of establishments

The preliminary results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 1,788 establishments in the formal sector of the economy were engaged in arts, entertainment and recreation activities in 2020, a decrease of -46.2 percent from the 3,321 establishments in 2019. (Tables A and 1, and Figure 1)

Among the industry groups, other amusement and recreation activities had the highest number of establishments of 759 or 42.4 percent of the total. This was followed by gambling and betting activities with 643 establishments (36.0%), and sports activities with 310 establishments (17.3%). On the other hand, libraries, archives, museums  and  other  cultural  activities  recorded  the  least  number of establishments of 34 (1.9%). (Table 1 and Figure 1)

Figure 1. Percentage Distribution of Arts, Entertainment, and Recreation Sector 
by Industry Group: Philippines, 2020

Gambling and betting activities industry employed the highest number of workers

The sector employed a total of 50,005 workers in 2020. Compared to the total employment in 2019, a decline of -37.6 percent from the 80,125 workers was recorded. Of the total, 49,387 workers (98.8%) were paid employees, while the rest were working owners and unpaid workers. (Tables A and 1)

Among the industry groups, gambling and betting activities employed the highest number of workers of 26,843 (53.7%). This was followed by other amusement and recreation activities with 14,026 workers (28.0%) and sports activities with 6,854 workers (13.7%). (Table 1 and Figure 2)

At the regional level, the National Capital Region (NCR) recorded the highest employment of 20,671 (41.3%) workers. CALABARZON and Central Luzon ranked second and third with 6,882 workers (13.8%) and 4,990 workers (10.0%), respectively. (Table 2)

Figure 2. Distribution of Employment for Arts, Entertainment, and Recreation Sector 
by Industry Group: Philippines, 2020

NCR had the highest average workers per establishment in 2020

The sector recorded an average of 28 workers per establishment in 2020. (Tables A and 3)

Industry group-wise, gambling and betting activities posted the highest average of 42 workers per establishment. Libraries, archives, museums and other cultural activities followed with an average of 34 workers per establishment. On the other hand, other amusement and recreation activities recorded the lowest average number of 18 workers per establishment. (Table 3)

Region-wise, NCR had the highest average worker per establishment of 66 in 2020. This was followed by Cagayan Valley and CALABARZON, which recorded at 55 and 29 workers per establishment, respectively. (Table 4)

Gambling and betting activities industry paid the highest average annual compensation

In 2020, the sector paid a total compensation of PhP 15.50 billion to its employees. This translates to an average annual compensation of PhP 313.77 thousand per paid employee, a decrease of -20.9 percent from the PhP 396.77 thousand average annual compensation per paid employee in 2019. (Tables A and 2)

Among  the  industry  groups,  gambling  and  betting activities  paid   the highest average annual compensation of PhP 464.61 thousand  per paid employee. This was followed by libraries, archives, museums and other cultural activities and sports activities which paid an average annual compensation of Php 245.50 thousand and PhP 209.37 thousand per paid employee, respectively. (Table 3 and Figure 3)

Among the regions, NCR paid the highest, with an average annual compensation of PhP 504.48 thousand per paid employee. Cagayan Valley and CALABARZON came second and third, with average annual compensation of PhP 327.74 thousand and PhP 286.91 thousand per paid employee, respectively. (Table 4)

Gambling and betting activities industry contributed the highest share to total revenue and expense

The sector generated a total revenue of PhP 68.24 billion and incurred a total expense of PhP 82.08 billion in 2020. (Tables A and 2, Figure 4)

The revenue generated and expense incurred by the top three industry groups of the sector were as follows:

1. Gambling and betting activities had the highest share to total revenue and expense amounting to PhP 56.46 billion (82.7%) and PhP 69.18 (84.3%), respectively; 
2. Sports activities with total revenue of PhP 5.53 billion (8.1%) and total expense of PhP 5.62 billion (6.8%); and 
3. Other amusement and recreation activities with revenue of PhP 5.09 billion (7.5%) and expenditure of PhP 6.01 billion (7.3%). (Table 1 and Figure 4)

Region-wise, NCR generated the highest revenue of PhP 49.77 billion (72.9%) and incurred the highest expense of PhP 61.23 billion (74.6%).

Figure 4. Revenue and Expense for Arts, Entertainment and Recreation Sector 
by Industry Group: Philippines, 2020

Gambling and betting activities registered the highest return

The sector generated a revenue per peso expense ratio of 0.83 in 2020. This ratio indicates that for every peso spent, on the average, the sector generated a corresponding revenue of 0.83 pesos.

Among the industry groups, creative, arts and entertainment activities recorded the highest revenue per peso expense ratio of 1.02. Followed by sports activities with a revenue per peso expense ratio of 0.98. On the other hand, gambling and betting activities had the lowest revenue per peso expense ratio of 0.82. (Table 3)

Creative, arts and entertainment activities received the largest amount of subsidy from the government

The sector received a total subsidy of PhP 3.90 million from the government in 2020. Libraries, archives, museum and other cultural activities is the lone recipient of the total subsidy. (Tables A and 1)

Among regions, Davao Region and MIMAROPA Region received subsidy from the government amounting to PhP 3.00 million and PhP 900 thousand, respectively. (Table 2)

DENNIS S. MAPA, Ph.D. 
Undersecretary 
National Statistician and Civil Registrar General

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary results of the 2020 Annual Survey of Philippine Business and Industry (ASPBI) for arts, entertainment and recreation activities 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 2020.

The conduct of the 2020 ASPBI is authorized under Republic Act No. 10625 known as the Philippine Statistical Act of 2013 which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

II. Data collection and Processing

The survey was conducted nationwide in 2021 with the year 2020 as the reference period, except for employment whose reference period is as of 15 November 2020.

Sample establishments were given various options in accomplishing the survey questionnaire. These were the following:

1. online questionnaire available at https://aspbi.psa.gov.ph; 
2. electronic copy of the questionnaire either in portable document format (.pdf) or Excel (.xlsx) file format; and 
3. printed copy of the questionnaire.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2020 ASPBI questionnaires in the provinces.

Data are presented by industry group or 3-digit classification as classified under the 2009 Philippine Standard Industrial Classification (PSIC).

III. Taxonomy of Establishments

An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.

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 a single establishment, branch, establishment and main office with branches elsewhere, main office only, or an ancillary unit other than the main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be a single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, or 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. 01 Series of 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 total employment as of the time of visit during the latest Updating of the List of Establishments.

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. Also included 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 2020 was used for the 2020 ASPBI.

IV. Scope and Coverage

The 2020 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

1. Agriculture, Forestry and Fishing (A) 
2. Mining and Quarrying (B) 
3. Manufacturing (C) 
4. Electricity, Gas, Steam, and Air Conditioning Supply (D) 
5. Water Supply; Sewerage, Waste Management and Remediation Activities (E) 
6. Construction (F) 
7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G) 
8. Transportation and Storage (H) 
9. Accommodation and Food Service Activities (I) 
10. Information and Communication (J) 
11. Financial and Insurance Activities (K) 
12. Real Estate Activities (L) 
13. Professional, Scientific and Technical Activities (M) 
14. Administrative and Support Service Activities (N) 
15. Education (P) 
16. Human Health and Social Work Activities (Q) 
17. Arts, Entertainment and Recreation (R) 
18. Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:

1. Corporations and partnership 
2. Cooperatives and foundations 
3. Single proprietorship with employment of 10 and over 
4. Single proprietorships with branches

Hence, the 2020 ASPBI covered only the following economic units:

1. All establishments with total employment (TE) of 10 or more; and 
2. 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.

V. Sampling Design

The 2020 ASPBI uses stratified systematic sampling design with 3-digit or 5-digit PSIC as the first stratification variable, depending on the sector, and total employment, which is classified into Micro, Small, Medium establishments (MSME), as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, called strata, and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases precision of “overall” survey estimates.

Domain

The geographic domain of the 2020 ASPBI is region. The industry domain/stratum is 3-digit or 5-digit industry classification, and the employment domain/stratum is the MSME classification.

Unit of Enumeration

The unit of enumeration for the 2020 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2020 ASPBI was extracted from the preliminary 2020 List of Establishments (LE) as of 06 January 2021. This frame was used to draw the sample establishments for the survey. The preliminary 2020 LE showed that there were 1,000,440 establishments in operation in the country of which 336,205 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2020 ASPBI.

Estimation Procedure

1) Estimation of Survey Weights

Base Weight

The base weight is the inverse of the probability of selection. For the ASPBI, the base weight for each domain is given by:

where:

w_hk = weight of the k^th establishment in the h^th stratum 
N_h  = total no. of establishments in the h^th stratum 
n_h   = total no. of sample establishments in the h^th stratum 
h     = refers to the industry-employment stratum

Adjustment Factor

To take into account the non-responding sample establishments, the adjustment factor by region and industry domain is as follows:

where:

A_s     = adjustment factor for industry domain s 
X_1k   = eligibility status of the k^th sample establishment (1 if eligible, 0 otherwise) 
X_2k   = responding status of the k^th sample establishment (1 if responding, 0 otherwise)

Final Weight

The final weight is the product of the base weight and adjustment factor.  That is,

where:

 w'_hk   = final weight of the kth sample establishment in stratum h 
 w_hk    = weight of the k^th establishment in the h^th stratum 
  As    = adjustment factor for industry domain s

2) Estimation of Total

Total by Industry-Employment Stratum

The estimator for the total of a characteristic in each industry-employment stratum in a region (geographic domain) is given by:

where:

y_hk   = value of the k^th sample establishment in stratum h 
w’_hk = final weight of the kth sample establishment in stratum h

Total by Industry Stratum and Domain

The estimator for the total of a characteristic in each industry stratum in each regional domain is given by:

where:

h_i = number of employment strata for industryvstratum i

Total by Employment Stratum and Domain

The estimator for the total of a characteristic in each employment stratum in each regional domain is given by:

where:

hj = number of industry strata for employment stratum j 
r  = subscript for geographic domain r

Total by Geographic Domain

The estimator for the total of a characteristic in each geographic domain is given by:

where:

I  = total number of industry strata in geographic domain r 
J = total number of employment strata in geographic domain r

Total by Industry Stratum (National)

The estimator for the national total of a characteristic in each industry domain/stratum is given by:

where:

R = total number of regions

Total by Employment Stratum (National)

The estimator for the national total of a characteristic in each employment domain/stratum is given by:

National Total

The estimator for the national total of a characteristic is given by:

VI. Response Rate

Response rate for all arts, entertainment and recreation activities sector was 97.4 percent (1,245 out of 1,278 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out-of-scope establishments.

Of the total responses, 38 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2020 were not included in the generation of statistical tables.

VII. Concepts and Definitions of Terms

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer on behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-IBIG, etc.

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 is 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.

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.

Revenue is the 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.

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.