PHL Travelers Shift to Intra-Regional Destinations Amid Middle East War

PHILIPPINE TRAVELERS have responded to the Middle East war by prioritizing intra-regional travel, keeping the industry resilient despite the challenges posed by the deteriorating security situation along the Persian Gulf, the Department of Tourism (DoT) said. Tourism Undersecretary Verna Esmeralda C. Buensuceso said the fighting in the Middle East has affected tourism by diverting travel flows and raising operating costs. She noted, however, the shift to “nearshore” travel offsetting 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,” Ms. Buensuceso told an Asian Development Bank webinar on Thursday. “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.” “For example, when the recent conflict broke out, we also saw that many shifted immediately to focus on nearshore and intra-ASEAN (Association of Southeast Asian Nations) regional markets,” she added. Ms. Buensuceso said the government has been promoting domestic tourism to ensure business continuity. She said international tourist arrivals in ASEAN hit 92% of pre-pandemic levels in mid-2025, generating regional domestic income of $132 billion. In 2025, Philippine tourism generated P2.27 trillion in direct gross value added, according to preliminary estimates by the Philippine Statistics Authority. 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. Ms. Buensuceso noted that spending of about P3.26 trillion makes the Philippines one of ASEAN’s largest domestic tourism markets. “This strong domestic market has actually helped sustain the sector’s economic contribution and employment, demonstrating how a diversified tourism base can also strengthen resilience amid external uncertainties,” she added. She said the government should work to improve infrastructure and further boost domestic tourism. “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,” Ms. Buensuceso said. “And so improving connectivity, utilities, public services in these areas really require close coordination across national and local governments, as well as across, of course, sectors such as transport, public works, environment, and digital infrastructure,” she added. — Katherine K. Chan