A boy guides an outrigger canoe in the lake around Taal volcano on Sunday.
Manila was also affected by the eruption as fallen ash covered the runways of the city's worldwide airport on Sunday, prompting authorities to suspend flights due to the ash, the Civil Aviation Authority of the Philippines said.
The entire lake and the island where the volcano sits may be viewed from Tagaytay City in Cavite, another tourist spot in the Calabarzon area.
People watch as Taal Volcano spews ash and smoke during an eruption in Tagaytay, Cavite Province, south of Manila, on Sunday.
The airport authority also said priority would be given to departure flights, so that the airport's ramps can be cleared of planes parked since the night before.
The eruption shut down Manila's Ninoy Aquino International Airport and forced thousands of people to flee the area.
The explosion resulted in the alert level being raised to Alert Level 3 in the vicinity of the Taal volcano as of 4 pm.
It's hard to say when Taal's restiveness will ease, Solidum said, adding that the volcano's last disastrous explosion occurred in 1965, when more than 200 people were killed.
The volcano spewed ash that produced a mile-long plume that later caused ash fall in nearby communities, the Institute said.
Geologists said the volcano remained active, spurting red-hot lava some 500 metres (1,600 feet) into the air from new cracks that have opened in its northern flank, as accompanying earthquakes rattled the area.
The island is home to 6,000 residents, and rescue boats took people to safety in Batangas early Sunday.
Schools in the region around Taal, some government offices in Manila and the Philippine Stock Exchange were closed as authorities issued warnings against breathing the ash.
"Taal is a very small volcano but a risky volcano", said Renato Solidum, Phivolcs director.
Although Taal Volcano Island was designated as a "permanent danger zone" by Philvolcs, strongly not recommending permanent settlement, residents still choose to live in the island, fueling its tourism industry.
About 20 typhoons and other major storms each year also lash the Philippines, which lies between the Pacific and the South China Sea, making it one of the world's most disaster-prone countries.
In Manila, long queues formed in shops selling face masks as health officials warned of possible breathing problems for people with respiratory ailments and urged the public to stay indoors and use dust masks when going out.