Majority of establishments are engaged in other amusement and recreation activities

According to the final results of the 2010 Annual Survey of Philippine Business and Industry, there were a total of 1,861 establishments engaged in Arts, entertainment and recreation. A total of about 89.7 percent or 1,670 establishments had a total employment (TE) of less than 20 while 191 establishments or 10.3 percent had TE of 20 and over.

As shown in Figure 1, other amusement and recreation activities garnered the highest number of establishments at 1,238 (66.5%). Sports activities ranked second with 369 (19.8%). Libraries, archives, museums and other cultural activities on the other hand, recorded the lowest number of establishments with only 16 (0.9%).

Gambling and betting activities industry generates the highest employment

Employment in 2010 reached a total of 41,100. Out of this total, 38,918 or 94.7 percent were paid employees while the remaining 2,182 (5.3%) were working owners and unpaid workers.

Figure 2 shows that the gambling and betting activities had the most number of employees with 16,714 (40.7%).  Other amusement and recreation activities occupied the second place with 14,581 employees (35.5%).  The least number of employees were engaged in libraries, archives, museums and other cultural activities with only 1,141 (2.8%).

Gambling and betting activities industry pays the highest compensation

The total compensation paid by Arts, entertainment and recreation section amounted to PHP11.1 billion, an equivalent of PHP286,081 average annual compensation per paid employee.

By industry group, gambling and betting activities paid the highest compensation to its employees amounting to PHP8.3 billion or 74.2 percent of the total. Other amusement and recreation activities followed with PHP1.4 billion (12.4%) while the least compensation was paid by creative, arts and entertainment activities with PHP118.1 million (1.1%).

Employees of gambling and betting activities were the highest earners in 2010 with an average annual compensation of PHP497,153 per paid employee followed by employees of creative, arts and entertainment activities with PHP179,137. Other amusement and recreation activities employees received the lowest average annual remuneration of PHP100,813. See Figure 3.

Total revenue amounts to PHP58.3 billion; Gambling and betting activities industry generates the largest

Gross revenue earned in 2010 by Arts, entertainment and recreation establishments reached PHP58.3 billion.  Gambling and betting activities industry was the top contributor with revenue of PHP42.0 billion or 72.0 percent of the total.  Earning the second place was the other amusement and recreation activities industry with PHP9.6 billion (16.5%), while the creative, arts and entertainment activities generated the least revenue with only PHP370.0 million (0.6%).

Total cost reaches PHP28.3 billion; Gambling and betting activities industry spends the highest

Cost for operating the industry summed up to PHP28.3 billion. Gambling and betting industry incurred the highest cost with PHP15.0 billion (53.0%) followed by other amusement and recreation activities with PHP7.8 billion (27.4%).

Revenue-cost ratio stands at 2.1; Gambling and betting activities industry records the highest returns

Revenue-cost ratio, the revenue generated per PHP1 cost, amounted to 2.1.  Among industries, gambling and betting activities recorded the highest with 2.8 followed by sports activities with 1.3. Both creative, arts and entertainment activities and libraries, archives, museums and other cultural activities had revenue per cost of 1.0.

Value added amounts to PHP35.5 billion

Value added for the section was estimated at PHP35.5 billion.  Gambling and betting activities contributed the largest with PHP30.0 billion or 84.5 percent while creative, arts and entertainment activities shared the least at PHP76.9 million (0.2%).

Employees of gambling and betting activities industry most productive in 2010

Value added per worker, a measure of labor productivity, was valued at PHP864.6 thousand.  Among industries, gambling and betting activities had the highest average of PHP1.8 million followed by sports activities industry with PHP332.4 thousand. Creative, arts and entertainment activities was lowest with 46,112.

Gross additions to fixed assets totals PHP3.4 billion

Gross additions to tangible fixed assets in 2010 totaled to PHP3.4 billion with the other amusement and recreation activities industry recording the highest at PHP1.6 billion (47.1%).  Creative, arts and entertainment activities industry had the lowest with only PHP36.2 million (1.0%).

Subsidies in 2010 amount to PHP117.2 million

Subsidies granted to the sector reached PHP117.2 million. Creative, arts and entertainment activities industry received the largest subsidy amounting to PHP105.0 million (89.6%). On the other hand, gambling and betting had no reported subsidy among the industries.

TECHNICAL NOTES

Introduction

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office (NSO) which aims to provide key measures on the performance, levels, structure and trends of economic activities in the entire country for the year 2010.  It is one of the designated statistical activities of the government and as such the survey generates the most critical and essential statistics required for economic planning and analysis. 

The 2009 Philippine Standard Industrial Classification (PSIC) was adopted for the first time in this round.  This is the latest version of the classification of industries in the country released by the NSCB after the 1994 PSIC was amended in 2002.  It conforms with the International Standard Industrial Classification (ISIC) Revision 4 prescribe by the United Nations, but with modifications to suit national situation and requirement.  The PSIC is a statistical classification of all economic activities, designed as a guide and a comprehensive framework for securing uniformity and comparability of both the government and private sectors.

The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940.

Scope and coverage

The 2010 ASPBI covered establishments engaged in 18 economic sections classified under the 2009 Philippine Standard Industrial classification (PSIC) namely:

• Agriculture, Forestry and Fishing
• Mining and Quarrying
• Manufacturing
• Electricity, Gas, Steam and Air Conditioning Supply
• Water Supply, Sewerage, Waste Management and Remediation Activities
• Construction
• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
• Transportation and Storage
• Accommodation and Food Service Activities
• Information and Communication
• Financial and Insurance Activities
• Real Estate Activities
• Professional, Scientific and Technical Services
• Administrative and Support Service Activities
• Education
• Human Health and Social Work Activities
• Arts, Entertainment and Recreation
• Other Service Activities

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

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 or more
• Single proprietorships with branches

Like all other establishment surveys conducted by the NSO, the 2010 ASPBI 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.

Economic organizations 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 establishment 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 branches 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

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. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator
• 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. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS
• Government Corporation  - is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government.  The establishment name included words such as Corporation or CORP., INCORPORATED or INC
• Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC
• 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 2009  PSIC is utilized to classify units according to their economic activities.  It was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 signed on February 10, 2010.  It will be used for the 1^st time for the 2010 ASPBI.

The 2009 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major section, is denoted by the characters A to U. They also refer to sector classification.  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 total employment (TE). The following are the employment size classification used in the 2010 ASPBI:

• The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 31, 2010 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.
  

  The geographic domains of the 2010 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.

  Hence, the samples of the 2010 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.

  Response rate

  A total of 374 or 97.4 percent of sample establishments responded.  These include receipts of “good” questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. 

   

  CONCEPTS AND DEFINITIONS OF TERMS

   

  Economic activity or business is the activity of the establishment as classified under the 2009 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.

  Total employment is the number of persons who worked in or for this establishment as of November 15, 2010.

  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.

  Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer’s price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.

  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.

  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 tangible fixed assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.

  Gross additions to tangible fixed assets is the sum of cost 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.

  Valued added is gross output less intermediate cost.

  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, franchise income and foreign exchange gains), 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 and water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost.

  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 ris 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.