The white-sand Sani-Sani beach on Luuk Island, off the coast of Jolo, Sulu. Image Source: Philippines Tourism

At the heart of this problem lies a single word: instability. But this instability is neither new nor singular in cause. It is the result of a decades-long accumulation of insurgencies, separatist movements, territorial disputes, political fragmentation, and reputational damage. While no one actor can claim sole responsibility, the region’s future will depend on whether its leaders, communities, and external partners can address these layered crises with clarity and cooperation.

Tourism Stalled by Instability, Not Inadequacy

The region’s tourism potential is unquestionable. Sulu, Basilan, and Tawi-Tawi boast some of the Philippines’ most pristine beaches, untouched coral reefs, and vibrant Islamic heritage. Sabah, across the border, is similarly gifted with biodiversity and indigenous cultures. In a more peaceful context, these areas could thrive as hubs for eco-tourism, cultural immersion, and marine adventure. Instead, they are marooned by perception. In March 2025, Australia renewed its travel advisory, warning of a “very high threat of terrorism and kidnapping” in the southern Philippines. The United States, United Kingdom, and Canada maintain similar advisories. These warnings have real effects—tourists cancel trips, insurers deny coverage, and development funds are diverted elsewhere.

Travel warnings have real effects—tourists cancel trips, insurers deny coverage, and development funds are diverted elsewhere.

The most visible cause of these advisories is the lingering threat posed by armed groups—especially the Abu Sayyaf Group (ASG), whose record of violence has left scars across the region and deepened the global sense of unease. Between 2016 and 2020 alone, the International Maritime Bureau attributed 85 seafarer abductions to ASG. A 2023 report by the Philippine Center for Security Studies documented that over 30 foreign nationals had been held hostage by the group since 2000, often taken to jungle camps in Sulu and Basilan. Even if ASG’s operational capacity has declined, the damage is done. In early 2025, the Queen Anne cruise ship resorted to “stealth mode”—shutting lights and ordering passengers to close curtains—while passing through the Sulu-Celebes Sea. The symbolic move, widely reported in international media, reinforced the idea that these waters remain hostile.

Political Posturing and Divided Leadership

Beyond armed threats, political instability and unresolved sovereignty claims continue to weigh heavily on the region’s reputation. In the Philippines, a divided electorate and contested national leadership have made foreign policy toward Sabah and the Sulu Archipelago inconsistent. Public discourse within the country is fractured, with some supporting peaceful development while others revive calls for territorial claims that unsettle international relations.

The Sabah dispute itself is a major destabilizer, pursued from multiple fronts. The Philippine state has intermittently asserted sovereignty. The Sulu heirs claim historical rights based on colonial-era treaties. And various factions within the Sultanate of Sulu remain divided on leadership, legitimacy, and strategy. The 2025 revocation of the 1962 Sabah transfer by one faction of the Sultanate was seen abroad as provocative and disorganized. Meanwhile, the heirs’ multi-billion-dollar lawsuit against Malaysia—widely labeled as part of the “Sulu Fraud”—has only deepened skepticism about their intentions. The fact that multiple claimants vie for the title of Sultan, each staking legitimacy in different forums, only reinforces the perception of chaos.

A Way Forward: Stability First, Sovereignty Second

Tourism cannot thrive without security and stability. According to the Philippine Department of Tourism, the entire country earned nearly $10 billion USD from tourism in 2019. But regions like Sulu, Basilan, and Tawi-Tawi continue to miss out on that national prosperity—not because of a lack of beauty or culture, but because of entrenched instability. Travel advisories, insurance bans, and canceled itineraries mean infrastructure investment stalls. Local tourism ventures—diving tours, cultural homestays, fishing expeditions—have few clients. Every political stunt, armed skirmish, or legal controversy further alienates potential visitors.

Tourism cannot thrive without security and stability.

This becomes even more glaring when viewed alongside similar destinations like Bali. In 2019, the Indonesian island drew over 16 million tourists alone, earning more than $15 billion USD in tourism revenue. Yet Sulu and its neighboring provinces arguably offer more: healthier coral reefs within the Coral Triangle, seasonal whale shark sightings, and an intact maritime culture rooted in centuries of Islamic heritage. Sulu’s coastlines remain largely undeveloped—untouched by mass tourism—and its indigenous traditions, including the practices of the Sama-Bajau sea nomads, offer a cultural depth now hard to find in Bali's commercialized tourism sector.

And still, Sulu cannot access this economic potential—not because it lacks assets, but because it lacks stability.

Tourism as a Realistic Development Strategy

Unlike the distant and improbable payout of a multibillion-dollar arbitration case—one that serves the private interests of no more than seven claimants—tourism offers an immediate, sustainable, and inclusive path forward. While the heirs of Sulu pursue legal campaigns abroad, the people of Sulu remain trapped in poverty, insecurity, and isolation. The wealth of the region is not buried in old treaties or courts in Europe—it is in the land and water already at their disposal.

Regions like Bali demonstrate what tourism revenue can achieve. Investment from tourism has transformed Bali’s infrastructure, enabling new roads, ports, and airport expansions. It has also supported vocational education, particularly in hospitality and the arts, and helped fund cultural preservation through language, music, and dance programs. Environmental programs, including marine park protections and coastal cleanups, have also been tied directly to tourism taxes and community engagement.

Sulu could follow a similar path. With even a fraction of Bali’s tourism, the region could invest in inter-island transportation, emergency health clinics, basic education, reef conservation, and Islamic cultural centers. Instead of dividing its leadership over external claims, the region could unite around internal growth—empowering local communities, sustaining heritage, and building a future that benefits all, not a handful of litigants.

Persisting with arbitration illusions while sidelining urgent local development has only compounded Sulu’s instability. The cost is not limited to missed economic opportunities—it has fundamentally shaped how the region is viewed by international investors, tourists, and diplomatic actors.

This reputational crisis cannot be laid solely at the feet of the Abu Sayyaf Group or the Sulu heirs. It reflects a broader, systemic failure: decades of governmental neglect, fractured leadership, unresolved conflict legacies, and sovereignty claims promoted through erratic legal and political spectacles. Until these patterns are confronted and reversed, the promise of tourism-led recovery will remain just as distant as the payouts some continue to chase.

REFERENCES

International Maritime Bureau. (2020). Piracy and armed robbery against ships: Annual report 2020. ICC Commercial Crime Services.

Macrotrends. (2024). Philippines tourism statistics 1995–2024. https://www.macrotrends.net/global-metrics/countries/PHL/philippines/tourism-statistics

Philippine Center for Security Studies. (2023). Hostage-taking patterns and extremist finance in the southern Philippines: A twenty-year review. PCSS Publications.

Statista. (2020). Tourism receipts in Bali, Indonesia. https://www.statista.com/statistics/1032094/indonesia-bali-tourism-receipts/

Yahoo News UK. (2025, March). Foreign Office issues warning for two Southeast Asian destinations. https://uk.news.yahoo.com/foreign-office-issues-warning-two-063439944.html