The Philippines is an archipelago situated in Southeast Asia between Taiwan in the north and by Indonesia and Malaysia in the south. It comprised of about 7,100 islands with an Exclusive Economic Zone of about 2.2 million square kilometers (km2), 266,000 km2 of which are coastal or municipal waters. Out of 1,500 municipalities and 117 cities in the country, 832 (55.47%) and 57 (48.72%), respectively, are situated along the coast. Moreover, 64 (81.01%) out of 79 provinces likewise have coastal domains.

In response to the global initiatives and the demands of policy makers in the country, several efforts had been made to estimate the contribution of ocean-based industries to the Philippine economy. The initial efforts on the compilation of the Philippine Ocean Economy were undertaken by the National Statistical Coordination Board (NSCB). The NSCB team compiled estimates on the revenues of ocean-based industries. These estimates were presented during the 2009 East Asian Seas Congress which underscored the importance of the maritime sector in the socio-economic development of Southeast Asia.

The NSCB presented to the 11th National Convention on Statistics in 2010 a paper titled “Towards a Satellite Account on the Maritime Sector in the Philippine System of National Accounts: Preliminary Estimates.” Covering the period 2003 to 2006, the said paper presented estimates of gross output, intermediate consumption, gross value added, and employment (local and overseas) of the maritime sector.

In 2015, the Philippine Statistics Authority (PSA) presented to East Asia Sea Congress in Vietnam the 2012 updates on the contribution of ocean-related industries to the Philippine economy in terms of gross output, intermediate consumption, and gross value added of ocean-related industries. Further updates on the estimates were presented during the Blue Economy Forum in Thailand in 2017. This exercise, however, expanded the coverage of the ocean sector to include services such as financial intermediation, education, hotel and accommodation, and recreational activities. In the following year, PSA conducted a consultative forum to present the scope and coverage and methodology of the Philippine Ocean Economy Satellite Accounts and to solicit comments from data providers and stakeholders.

During the 14th National Convention on Statistics in 2019, PSA presented a paper titled, “Measuring the Ocean Economy: Towards the compilation of the Philippine Ocean Economy Satellite Accounts (POESA).” This paper exhibited the provisional estimates of POESA in 2012 to 2018. After the said event, PSA updated and compiled the 2019 estimates. For the first time, on 25 October 2019, POESA estimates were shared to the public on the PSA website. However, until an international framework is approved for adoption, the current estimates remain experimental which needs regular reviewing and updating.

II. Scope and Coverage

III. Provisional measurement framework

The estimation methodology for POESA employs the Production Accounts from the 2008 System of National Accounts (SNA) as the measurement framework. This approach has several key advantages: removes the danger of double counting, provides a meaningful basis for comparison across industries, and simplifies the analysis of the estimates.

Gross Value Added (GVA), as defined in the SNA, is “the value of output less the value of intermediate consumption.” The Ocean Economy, in this context, is defined as the sum of the GVA of Ocean-based industries.

IV. POESA configuration

1. AGRICULTURE, FORESTRY & FISHING

2. Ocean Fishing

3. INDUSTRY

4. Offshore and Coastal Mining and Quarrying

5. Manufacture of Ocean-based Products

6. Coastal Construction

7. Ocean-based Power Generation, Transmission, and Distribution

8. SERVICES

9. Marine Equipment Wholesale and Retail

10. Sea-based Transportation and Storage

11. Marine Information Services

12. Marine Insurance

13. Marine Renting and Business Activities

14. Maritime Safety, Surveillance and Resource Management

15. Maritime Education

16. Coastal Accommodation and Food and Beverage Service Activities

17. Coastal Recreation

V. Data and Data Sources

The data used in the compilation of the preliminary estimates on POESA are obtained from several sources. Below are the major data sources for estimation:

VI. Methodology

VI.1. Estimation Methodology

1. Ocean Fishing

The GVA of ocean fishing is equal to the sum of the GVAs of the following fisheries subsectors: commercial fisheries, marine municipal fisheries, and marine aquaculture. Marine aquaculture consists of brackish water fishpond, brackish water fish pen, brackish water fish cage, marine fish pen, marine fish cage, oyster farm, mussel farm, and seaweed farm.

Given the GVA of fishing and aquaculture and its support activities from the NAP, the GVA of ocean fishing is estimated using ratios derived from the value of production of fisheries by subsector and the value of production of marine aquaculture by farm type and culture environment.

2. Offshore and Coastal Mining and Quarrying

The GVA of Offshore and Coastal Mining and Quarrying is equal to the sum of the GVAs in the following sub-industries: Offshore extraction of crude petroleum and natural gas; Offshore stone, clay, and sand quarrying; and Extraction of salt.

For the GVA of Offshore extraction of crude petroleum and natural gas, the GVA of Extraction of crude petroleum and natural gas at current prices from NAP is adjusted by removing the GVA specific for onshore crude petroleum and natural gas extraction.

The share of onshore crude petroleum and natural gas extraction to the total GVA of Extraction of crude petroleum and natural gas was derived using the Philippine Petroleum Production data from DOE.

Meanwhile, the GVA of Offshore stone, clay, and sand quarrying was obtained by applying the ratio of the GVA of Stone, clay, and sand quarrying over the total Stone quarrying, and other metallic and non-metallic mining from the CPBI to the levels of Stone quarrying, and other mining and quarrying at current prices from NAP. This is further adjusted by deriving the GVA of specific offshore quarrying only by using parameters from the 2018 SUT.

Lastly, the GVA of Extraction of Salt is computed by applying the ratio of the GVA of Extraction of Salt over the total Stone quarrying, and other metallic and non-metallic mining from the CPBI/ASPBI to the levels of Stone quarrying, and other mining and quarrying at current prices from NAP.

3. Manufacture of Ocean-based products

The GVA of Manufacture of Ocean-based Products is equal to the sum of the GVAs in the following sub-industries: Manufacture of ocean-based food products, Manufacture of machinery and equipment for shipping, Manufacture and building of boats and ships, Manufacture of nettings, cordage, rope and twine products, Manufacture of chemical and chemical products, Manufacture of basic pharmaceutical products, and Maintenance and repair of boats and ships.

The GVA of Manufacture of ocean-based food products is obtained by applying the ratio of the GVA of manufacture of ocean-based food products over the total manufacture of food products from CPBI to the levels of Manufacture of food products at current prices under the Manufacturing industry in NAP.

Likewise, GVA of Manufacture of machinery and equipment for shipping is obtained by applying the ratio of the GVA of manufacture of machinery and equipment for ships over the total manufacture of machinery and equipment from the CPBI to the levels of Manufacture of machinery and equipment except electrical at Current Prices under the Manufacturing industry in NAP.

The GVA of Manufacture and building of boats and ships is obtained by applying the ratio of the GVA of manufacture of transport and equipment for boats and ship building over the total manufacture of transport and equipment from the CPBI to the levels of Manufacture of transport equipment at current prices under the Manufacturing industry in NAP.

For the GVA of Manufacture of nettings, cordage, rope and twine products, it is computed by applying the ratio of the GVA of manufacture of fishing nets and other nettings, products of cordage, rope and twine products over the total manufacture of textile from the CPBI to the levels of Manufacture of textiles at current prices under the Manufacturing industry in NAP. This is further adjusted by deriving the GVA specific for the manufacture of netting, cordage, rope and twine products used for fishing and other ocean-based activities using parameters from the 2018 SUT.

Similarly, for the GVA of Manufacture of chemical and chemical products, it is computed by applying the ratio of the GVA of manufacture of chemical and chemical products used for ocean-based activities over the total manufacture of chemical and chemical products from the CPBI to the levels of Manufacture of chemical and chemical products at current prices under the Manufacturing industry in NAP. This is further adjusted by deriving the GVA specific for the manufacture of chemical and chemical products used for fishing and other ocean-based activities using parameters from the 2018 SUT.

Moreover, for the GVA of Manufacture of basic pharmaceutical products, it is computed by applying the ratio of the GVA of Manufacture of basic pharmaceutical products used for ocean-based activities over the total manufacture of basic pharmaceutical products and pharmaceutical preparations from the CPBI to the levels of Manufacture of basic pharmaceutical products and pharmaceutical preparations at current prices under the Manufacturing industry in NAP. This is further adjusted by deriving the GVA specific for the manufacture of basic pharmaceutical products used for fishing and other ocean-based activities using parameters from the 2018 SUT.

Lastly, GVA of Maintenance and repair of boats and ships is obtained by applying the ratio of the GVA of repair of ships and boats and transport equipment over the total other manufacturing from the CPBI to the levels of Other Manufacturing at Current Prices under the Manufacturing industry in NAP.

4. Ocean-based Power Generation, Transmission, and Distribution

5. Coastal Construction

The GVA of coastal construction is equal to the sum of the GVAs of public and private coastal construction.

6. Marine equipment wholesale and retail

The GVA of marine equipment wholesale and retail is equal to the sum of the GVAs of the following industries: Wholesale of industrial machinery and equipment, Wholesale of professional and scientific and measuring and controlling equipment, Wholesale of transport equipment and supplies, except land motor vehicles, motorcycles and bicycles, and Other retail sale of new goods in specialized stores.

7. Sea-based Transportation and Storage

The GVA of sea-based transportation and storage is equal to the sum of the GVAs of the following transportation and storage sub-industries: water transportation; and warehousing and storage, and service activities for transportation (WSSAT).

Given the GVA of water transportation, warehousing and storage, and its support activities from NAP, the GVA of sea-based transportation and storage is estimated using ratios of ocean-related activities derived from the gross value added of water transportation and the gross value added of warehousing and storage, and support activities for transportation from CPBI.

8. Marine Information Services

The GVA of marine information services is equal to the GVA of data processing, hosting, and related services.
       
Given the GVA of information and publishing under the information and communication industry from NAP, the GVA of marine information services is estimated using the ratio derived from the GVA of data processing, hosting, and related services to the total information and publishing from the available survey of Philippine businesses and industry.

9. Coastal Accommodation and Food and beverage serving services

The Tourism Direct Gross Value Added (or TDGVA) for accommodation services for visitors is divided by the total number of tourists from the Regional Distribution of Overnight Travelers data to derive the TDGVA per tourist. This value is multiplied to the number of visitors in identified beach destinations. Data on top beach destinations were sourced from the Department of Tourism and is validated and expanded through tourism websites.

For this approach, it is assumed that each tourist generates a particular level of value added and the ratio of value added per tourist is homogenous for all destinations.

For food and beverage serving services, the TDGVA of food and beverage serving services is multiplied by the ratio derived from the GVA of food and beverage serving services in beach destinations to total food and beverage serving services from the available survey of the Philippine business and industry.

10. Marine Insurance

Data on the net premiums from Marine Insurance and total net premiums of all insurance types are sourced from the Insurance Commission. The ratio of Maritime Insurance to the net premiums of all insurance types is used to extract the value added of Maritime Insurance from the value added of Insurance from NAP.

11. Marine Renting and Business Activities

The GVA of Marine Renting and Business Activities is equal to the sum of the GVAs of the following industries: Renting of water transport equipment, Renting and leasing of recreational and sports goods, Travel agency activities, Tour operator activities, Activities of booking offices, Tourist assistance activities, Tickets sales/booking, for theatrical, entertainment and recreational reservation activities, and Research and experimental development in natural sciences.

12. Maritime Safety, Surveillance and Resource Management

The gross value added of ocean-related government services is estimated as a percentage of the published Public Administration and Defense; Compulsory Social Security industry of NAP.

13. Maritime Education

The GVA of Maritime Education is computed by applying the GVA per enrollee to total maritime enrollment.

14. Coastal Recreation

The Tourism Direct Gross Value Added (TDGVA) for recreation activities is divided by the total number of tourists from the Regional Distribution of Overnight Travelers data to derive the TDGVA per tourist. This value is multiplied to the number of visitors in identified beach destinations. Data on top beach destinations were sourced from the Department of Tourism and is validated and expanded through tourism websites.

For this approach, it is assumed that each tourist generates a particular level of value added and the ratio of value added per tourist is homogenous for all destinations.

VI.2. POESA STATISTICAL TABLES

The following are the published POESA statistical tables:

VII. Sources of Revision

The revisions in the estimates of POESA came from several sources. The main sources of revision are the availability of the revised 2019 to 2021 Annual NAP estimates and review/updating of parameters. Other sources of revisions are the availability of the following data:

• 2019-2021 Philippine Tourism Satellite Accounts from PSA;
• 2018-2021 Philippine Petroleum Production from DOE;
• 2019-2020 Restated Annual Financial Report from COA; and
• 2021 Annual Financial Report from COA.

VIII. Concepts and Definition of Terms

Ocean Economy refers to the economic activities, such as the production, distribution, and consumption of goods and services, related to or conducted in, near, or found in the seas.

According to the Technical Guidance on Ocean Accounting for Sustainable Development (2021), conceptual definitions of the ocean economy include some or all the following:

- Economic activity that is physically located on the ocean (e.g., shipping, fisheries, offshore oil, and gas)
- Economic activity that is physically proximate to the ocean (e.g., coastal tourism, coastal aquaculture)
- Economic sectors, located on land, that depend on natural inputs from the ocean environment, either biotic or abiotic (e.g., fish processing, construction materials)
- Economic activity that provides goods or services to sectors located on the ocean (e.g., shipbuilding, marine engineering)
- Market value of natural inputs (fish, minerals) potentially derivable from the SEEA-CF monetary flows accounts and market and non-market value of ecosystem services potentially derivable from the SEEA-EEA services supply accounts.

IX. Dissemination of Results and Revision

The schedule of release of revised POESA estimates is 10 months after the reference year. A press release, statistical tables, infographic, and social cards are to be posted on the PSA website.

X. Citation

Philippine Statistics Authority. (2022). Technical Notes on Philippine Ocean Economy Satellite Accounts. https://psa.gov.ph/technical-notes/.

Global Ocean Accounts Partnership (2021). Technical Guidance on Ocean Accounting for Sustainable Development v.1.0 March 2021.

Bersales, L.G., Ilarina, V., Poquiz, J.L., Raviz, J.A., and De Las Alas, J.L. (2019). Measuring the Ocean Economy: Towards the compilation of the Philippine Ocean Economy Satellite Accounts.

Garcia, M. (2005). Progress in the Implementation of the Philippine National Marine Policy: Issues and Options. United Nations – The Nippon Foundation Fellow, New York.

XI. Contact Information

Mr. Gerald Junne L. Clariño
Chief Statistical Specialist
Satellite Accounts Division
(632) 8376-1996
g.clarino@psa.gov.ph

For data request, you may contact: 
Knowledge Management and Communications Division 
(632) 8462-6600 locals 839, 833 and 834
info@psa.gov.ph