The Philippine travel industry has shown resilience despite the challenges posed by the deteriorating security situation in the Middle East, according to the Department of Tourism.
Tourism Undersecretary Verna Esmeralda C. Buensuceso noted that the fighting in the Middle East has affected tourism by diverting travel flows and raising operating costs, but the shift to "nearshore" travel has offset the decline in long-haul trips.
"I think our ASEAN member states have really applied the hard-earned, hard-learned lessons from the pandemic directly into tourism policy," Buensuceso said. "And looking at how we have now addressed some of the realities of the Middle East situation, we have actually established quick-response mechanisms and agility frameworks that allow destinations to pivot."
Domestic tourism has been a key driver of the sector's growth, with international tourist arrivals in ASEAN hitting 92% of pre-pandemic levels in mid-2025, generating regional domestic income of $132 billion.
The Philippines' domestic tourism market is a significant contributor to the country's economy, with spending of about P3.26 trillion making it one of ASEAN's largest domestic tourism markets.
However, the sector's share of gross domestic product fell to a three-year low of 8.1% last year, down from the 8.7% posted in 2024.
Improving infrastructure and boosting domestic tourism are key recommendations for the government to strengthen the sector's resilience amid external uncertainties, according to Buensuceso.
"In an archipelago like the Philippines with 7,641 islands, many of our emerging tourism destinations possess rich natural and cultural assets, but they lack the basic infrastructure needed to support sustainable tourism," Buensuceso said.
