Philippine President Benigno Aquino III admitted on Wednesday the negative impact of Monday's hostage- taking incident on Philippines' economy.

Aquino, however, expressed optimism that the incident would not have a long-term effect on the country's economy, particularly on the tourism industry.

"Well, it (tragedy) will impact negatively," he told reporters at a press conference held at the presidential palace on Wednesday.

The president also tasked the Department of Tourism to "re- engender the confidence of tourists" on the Philippines.

There were reports that some tourists have canceled their trips to the Philippines following the hostage-taking incident, in which eight tourists from Hong Kong died.

The government is targeting an economic growth of 5 percent to 6 percent for this year.