2006 Census of Philippine Business and Industry (CPBI) - Hotels and Restaurants Sector for Establishments with Average Total Employment (ATE) of 20 and Over : Preliminary Results

Reference Number: 

399

Release Date: 

Tuesday, January 13, 2009

 

Restaurants, bar, canteens and other eating and drinking place dominate hotel and restaurant 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 2,750 establishments with average total employment (ATE) of 20 and over engaged in hotels and restaurants. As shown in Figure 1, Restaurants, bars, canteen and other drinking and eating places garnered the highest number of establishments at 2,258 (82.1%). Hotels, camping sites and other provisions of short-stay accommodation recorded the remaining number of establishments with only 492.
     

Most establishments are located in National Capital Region

  1. On the regional level, National Capital Region (NCR) had the most number of establishments with 1,328 (48.3%). CALABARZON (Region IV-A) placed second with 332 establishments while Central Luzon (Region III) followed with 8.8 percent of the total. Autonomous Region in Muslim Mindanao (ARMM) had the least with only 4 establishments (0.1 %).
     

Restaurants, bars, canteen and other eating and drinking places generates the highest employment

  1. Employment in 2006 reached a total of 141,598. Out of this total, 140,102 or 98.9 percent were paid employees while the remaining 1,496 (1.1 %) were working owners and unpaid employees.
     
  2. Table 1 shows that the restaurants, bars, canteens and other eating and drinking places having the highest number in terms of establishments, had the most number of employees with 102,653 (72.5%). The remaining number of employees were engaged in hotels, camping sites and other provisions of short-stay accommodation with only 38,945.
     
  3. Region wise, NCR was the top employer among regions with 67,662 employees (47.8 %). CALABARZON followed with 15,329 (10.8%), while ARMM registered the least with only 125 employees.
     

Restaurants, bars, canteens and other eating and drinking places pays the highest compensation

  1. The total compensation paid by hotels and restaurants amounted to Php15.4 billion, an equivalent of Php110,219 average annual compensation. Out of the total, Php14.6 billion (94.3 %) comprised the salaries and wages while the remaining Php875 million (5.7%) went to the employer’s contribution to SSS/GSIS and the like.
     
  2. By industry group, restaurants, bars, canteens and other eating and drinking places paid the highest compensation to its employees amounting to Php8.5 billion or 54.9 percent of the total. Hotels, camping sites and other provisions of short-stay accommodation pays Php7 billion.
     

  1. Table 2 shows that labor payments in NCR amounted to Php9.4 billion (61%) of compensation nationwide. Central Visayas Region (Region VII), which expended around Php1.2 billion, came next. ARMM was the least payer with only Php5 million.
     

Restaurants, bars, canteens and other eating and drinking places earns the highest in 2006

  1. Hotels, camping sites and other provisions of short-stay accommodation employees were the highest earners in 2006 with an average annual compensation of Php182.3 thousand. Employees of restaurants, bars, canteens and other eating and drinking places received an average annual remuneration of Php83.2 thousand.
     
  2. By region, NCR based workers received the highest average annual compensation of Php140.3 thousand while employees from ARMM received the least with only Php45.5 thousand. Table A shows annual compensation per paid employee.
     

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

 

Region

Average Annual Compensation
(in Php)

Philippines

110,219

National Capital Region (NCR)

140,252

Cordillera Administrative Region (CAR)

91,916

Region I - Ilocos

58,156

Region II - Cagayan Valley

67,542

Region III - Central Luzon

82,064

Region IVA - CALABARZON

81,561

Region IVB - MIMAROPA

149,027

Region V - Bicol

58,794

Region VI - Western Visayas

75,776

Region VII - Central Visayas

115,853

Region VIII - Eastern Visayas

67,143

Region IX - Zamboanga Peninsula

61,845

Region X - Northern Mindanao

57,086

Region XI - Davao

73,383

Region XII - SOCCSKSARGEN

58,207

Autonomous Region In Muslim Mindanao (ARMM)

45,537

Caraga

48,777

 

 

Total revenue amounts to Php93.5 billion, restaurants, bars, canteens and other eating and drinking places produces the largest

  1. Gross revenue earned in 2006 for hotels and restaurants sector reached Php93.5 billion (Table 1). Restaurants, bars, canteens and other eating and drinking places was the top contributor with revenue of Php59.3 billion or 63.4 percent of the total. Hotels, camping sites and other provisions of short-stay accommodation generated only Php34.2 billion (36.6%).
     

  1. Gross revenue earned in 2006 for hotels and restaurants sector reached Php93.5 billion (Table 1). Restaurants, bars, canteens and other eating and drinking places was the top contributor with revenue of Php59.3 billion or 63.4 percent of the total. Hotels, camping sites and other provisions of short-stay accommodation generated only Php34.2 billion (36.6%).
     
  2. With respect to regions, NCR produced the highest revenue amounting to Php54.6 billion. The least revenue was made by ARMM.
     

Total cost reaches Php69.2 billion, restaurants, bars, canteens and other eating and drinking places spends the highest

  1. Cost for operating the industry summed up to 69.2 billion as shown in Table 1. Restaurants, bars, canteen and other eating and drinking places incurred the highest cost with Php45.1 billion (65.1%) and hotels, camping sites and other provisions of short-stay accommodation with almost Php24.1 billion.
     
  2. By region, NCR spent the largest as it incurred Php41.2 billion (59.6 %) cost for operating the industry. CALABARZON followed with Php6.6 billion . The least cost was recorded by ARMM with only Php13.5 million.
     

Revenue-cost ratio amounts to Php1.35, hotels, camping sites and other provisions of short-stay accommodation records the highest returns

  1. Revenue-cost ratio, the revenue generated per P1 cost, amounted to Php1.35. Among industries, hotels, camping sites and other provisions of short-stay accommodation recorded the highest indicating Php1.42 revenue per P1 cost ,followed by restaurants, bars, canteens and other eating and drinking places.
     

Value added amounts to Php31 billion

  1. Value added was estimated at Php31.4 billion. Almost 52.6 percent of the total value added was contributed by restaurants, bars canteens and other eating and drinking places. Hotels, camping sites and other provisions of short-stay accommodation had a total value added of Php14.9 or 47.4 percent.
     

Hotels, camping sites and other provisions of short-stay accommodation employees are the most productive

  1. Employees of hotels, camping sites and other provisions of short-stay accommodation were the most productive in 2006 in terms of revenue employee with a Php877 thousand per employment, 32.9 percent higher than the national average of Php660 thousand. Restaurants, bars, canteens and other eating and drinking places had only Php578 thousand.
     
  2. Value added per total employment, another measure of labor productivity, was valued at an average of Php222 thousand per employee. Among industries, hotels, camping sites and other provisions of short-stay accommodation had the highest average of Php382 thousand while restaurants, bars, canteens and other eating and drinking places was estimated at Php161 thousand.
     

Total change in inventories values at Php279 million

  1. Change in inventories, defined as the value of ending inventory less the beginning, amounted to Php278.6 million in 2006 as shown in Table 1. Restaurants, bars, canteens and other eating and drinking places recorded the highest with Php181.3 million, while hotels, camping sites and other provisions of short-stay accommodation had Php97.3 million.
     

Gross addition to fixed assets totals Php10.1 billion

  1. Gross additions to fixed assets in 2006 totaled to Php10.1 billion with hotels, camping sites and other provisions of short-stay accommodation recording the highest amount of Php8.0 billion (79.7%). Restaurants, bars, canteens and other eating and drinking places with only Php2.0 billion (20.3%).
     

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:

  • Code 0, 1 - 4 ATE
  • Code 1, 5 - 9 ATE
  • Code 2, 10 - 19 ATE
  • Code 3, 20 - 49 ATE
  • Code 4, 50 - 99 ATE
  • Code 5, 100 - 199 ATE
  • Code 6, 200 - 499 ATE
  • Code 7, 500 - 999 ATE
  • Code 8, 1000 - 1999 ATE
  • Code 9, 2000 and above ATE

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 3,092 or 93.1 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 82.8 percent or 2,750 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.

 


Source:   National Statistics Office
                 Manila, Philippines

 

Attachment: 

Tags: 

Industry: 

Hotels and Restaurants

Reference Period: 

2006

Edition: 

2006