2012 Census of Philippine Business and Industry - Arts, Entertainment and Recreation for Establishments with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2014-36

Release Date: 

Monday, May 12, 2014

 

Majority of establishments are engaged in gambling and betting activities

According to the preliminary results of the 2012 Census of the Philippine Business and Industry conducted nationwide, the Philippines had a total of 353 establishments with total employment (TE) of 20 and over engaged in Arts, Entertainment and Recreation. As shown in Figure 1, gambling and betting activities garnered the highest number of establishments at 134 (38.0%). Other amusement and recreation ranked second with 105 (29.7%). On the other hand, libraries, archives, museums and other cultural activities recorded the lowest number of establishments with 14 establishments (4.0%) (Table 1).

 

 

Most establishments are located in the National Capital Region (NCR)

On the regional level, National Capital Region (NCR) had the most number of establishments engaged in arts, entertainment and recreation with 103 (29.2%). CALABARZON followed next with 62 establishments (17.6%) while Central Luzon had 54 establishments (15.3%) (Table 2).

 

Gambling and betting activities posts the highest employment

A total of 35,153 workers were employed in Arts, Entertainment and Recreation section in 2012. Out of the total employment, 33,581 or 95.7 percent were paid employees while the remaining 4.5 percent or 1,525 were working owners and 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 22,197 (63.1%). Other amusement and recreation activities garnered the second place with 5,857 employees (16.7%). The least number of employees were engaged in libraries, archives, museums and other cultural activities with 954 (2.7%).

Region wise, NCR was the top employer in the section with 15,275 employees (43.5%). CALABARZON followed next with 6,100 (17.4%) employees, and Central Luzon with 4,448 (12.7%) (Table 2).

 

 

 

Average Annual Compensation is PHP411,497

The total compensation paid by Arts, Entertainment and Recreation amounted to PHP13.8 billion, an equivalent of PHP411,497 average annual compensation per paid employee.

By industry group, gambling and betting activities paid the highest compensation to its employees amounting to PHP11.7 billion or 84.8 percent. Sports activities followed with PHP990.9 million (7.2%) while the least compensation was paid by creative, arts and entertainment activities with PHP49.2 million (Table 1).

 

 

 

At the regional level, labor payments amounting to PHP9.3 billion or 67.2 percent was paid by establishments in NCR. Employers in CALABARZON disbursed PHP1.4 billion to its workers or 10.3 percent while Central Luzon paid PHP1.2 billion (8.9%).

 

Employees in gambling and betting activities earn the highest in 2012

Employers engaged in gambling and betting activities were the highest earners in 2012 with an average annual compensation of PHP534.4 thousand per paid employee. Employees of creative, arts and entertainment activities came in second with PHP235.3 thousand. On the other hand, workers in libraries & archives, museums & other cultural activities employees received the lowest average annual remuneration of PHP153.4 thousand (Table 3).

By region, employees from NCR received the highest average annual compensation of PHP613.6 thousand per paid employee, followed by Central Visayas with PHP375.7 thousand average annual compensation. Central Luzon ranked third with an average annual compensation of PHP294.5 thousand. Table 4 shows the average annual compensation per paid employee by region.

 

Total income amounts to PHP98.9 billion; Gambling and betting activities produces the largest

Total income earned by Arts, Entertainment and Recreation section in 2012 reached PHP98.9 billion. Gambling and betting activities was the top contributor with income of PHP88.0 billion or 89.0 percent. Sports activities gained PHP4.9 billion (4.9%), while the creative, arts and entertainment activities generated the least income with PHP571.9 million (0.6%).

More than half of the total income of the section was produced in NCR amounting to PHP72.2 billion (73.1%). CALABARZON followed next with PHP7.9 billion or about 8.0 percent. Completing the top three regions was Central Luzon with PHP6.1 billion or 6.1 percent of the total income.

 

Total expense reaches PHP80.5 billion

Total expense for operating the industry summed up to PHP80.5 billion. Gambling and betting activities incurred the highest with PHP70.2 billion (87.2%) followed by sports activities with payments of PHP4.8 billion (6.0%). Creative, arts and entertainment activities spent the least with PHP488.4 million.

Across region, NCR spent the largest as it incurred PHP61.0 billion (75.8%) of the total expense. CALABARZON and Central Visayas followed with PHP5.5 billion (6.9%) and PHP5.5 billion or 6.8 percent, respectively.

 

 

Income-expense ratio amounts to 1.23

Income-expense ratio, the income generated per PHP1 expense, amounted to 1.23. Among industries, gambling and betting activities recorded the highest with 1.25 income per PHP1 expense followed by libraries, archives, museums and other cultural activities with 1.19. Sports activities recorded the least income-expense ratio of 1.01.

Value added amounts to PHP37.5 billion

Value added for the section was estimated at PHP37.5 billion. Gambling and betting activities contributed PHP33.0 or 88.1 percent of the total value added of the section. Sports activities had a total value added of PHP2.0 billion or (5.3%) while other amusement and recreation activities provided PHP1.8 billion or 4.8 percent. The least value added was accounted for by creative, arts and entertainment activities with PHP216.9 million (0.6%).

 

 

Employees of gambling and betting activities are most labor productive

Value added per worker, a measure of labor productivity, was valued at PHP1.1 million. Among industries, gambling and betting activities had the highest average of PHP1.5 million followed by libraries, archives, museums and other cultural activities industry with PHP507.4 thousand while the least was recorded for creative, arts and entertainment activities, at PHP222.9 thousand.

 

Gross additions to fixed assets totals PHP2.8 billion

Gross additions to fixed assets in 2012 totaled to PHP2.8 billion with the gambling and betting activities industry recording the highest amount of PHP1.9 billion (66.1%). Other amusement and recreation activities had PHP601.4 million (21.3%) while the least was recorded by creative, arts and entertainment activities with PHP30.7 million (1.1%).

 

Total change in inventories stands at PHP275.7 million 

Change in inventories, defined as the value of ending less the beginning inventory, amounted to PHP275.7 million in 2012. Among industries, other amusement and recreation activities industry recorded the highest with PHP210.7 million, while gambling and betting activities had PHP50.3 million.

 

Subsidies in 2012 amount to PHP4.6 million

Subsidies received from the government in 2012 reached PHP4.6 million. Sports activities was granted by the government the largest amounting to PHP3.9 million (85.1%). Creative, arts and entertainment activities did not received any subsidy from the government.

 

Sales from e-commerce amount to PHP3.3 million

Sales from e-commerce transaction was recorded only to creative, arts and entertainment activities amounting to PHP3.3 million. The rest of the industries for arts, entertainment and recreation did not have an e-commerce transaction.

 

Total assets reaches PHP162.3 billion

Total assets for the section was estimated at PHP 162.3 billion. Gambling and betting activities recorded assets valued at PHP122.5 billion or 75.5 percent, the largest among industry. Sports activities contributed PHP26.1 billion (16.1%). Creative, arts and entertainment activities acquired the least assets amounting to PHP839.7 million or 0.5 percent.

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for Arts, Entertainment and Recreation sector for establishments with total employment of 20 and over.

The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru e-mail.

 

Legal Authority

The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:

  • Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.

  • Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).

  • Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.

  • Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.

  • Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.

     

Scope and coverage

The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:

1. Corporations and partnerships

2. Cooperatives and foundations

3. Single establishment with employment of 10 or more

4. Single proprietorship with branches

The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.

  • 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 Classificatin (PSIC). 

The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012.  Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.

Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (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 of Motor Vehicles and Motorcycles (G)

  • Transport 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)

  • Private Education (P)

  • Human Health and Social Work Activities (Q) 

  • Arts Entertainment, and Recreation (R)

  • Other Service Activities (S)

 

Unit of Enumeration

The unit of enumeration for the 2012 CPBI 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 organization (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 (EO=2) is an establishment which has a separate main office located elsewhere.

  • Establishment and main office (EO=3) is one where the establishments 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 propietorship 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 whatever 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 2012 CPBI: 

TE Code Total Employment TE Code Total Employment
0 1 - 4 5 100 - 199
1 5 - 9 6 200 - 499
2 10 - 19 7 500 - 999
3 20 - 49 8 1000 - 1999
4 50 - 99 9 2000 & Over

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 September 30, 2012 was used for the 2012 CPBI.

 

Sampling Design

Selection of sample establishment for the 2012 CPBI 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.

 

Response Rate

Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.

Total response rate for Arts, Entertainment and Recreation sector was 91.0 percent (688 out of 756 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments

Of the total responses, one establishment responded online, and no establishment submitted through e-mail. 

For establishments with TE 20 and over, the response rate was 92.4 percent.

 

CONCEPTS AND DEFINITIONS OF TERMS

 

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of November 15, 2012.

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.

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, PhilHealth, 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 incurred during the year whether paid or payable. Valuation is at purchaser prices 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.

Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Value added is gross output less intermediate input. Gross output for arts, entertainment and recreation 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.

Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.

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
               Manila, Philippines

Attachment: 

Tags: 

Industry: 

Other Community, Social and Personal Service Activities

Industry 2009 PSIC: 

Arts, Entertainment and Recreation