Yes, filipinos are very conservative - both christian and muslim. However, unlike American conservatism which tends to target your soul, Filipino conservatism has to do with regulating PUBLIC demeanor, not private choices. For example, in the eyes of Filipinos:
1) Going to a public beach in a 2-piece bikini is more shameful than taking money for sex in a dingy 2-hour hostel.
2) Kissing in public is more shameful than giving a stranger a BJ in private
3) Its easier to get out of a relationship if having discreet motel sex and taking separate taxies home, than if you innocently hold hands in a public place like the mall. Ditto for getting caught cheating, in terms of how much trouble you're in.
4) Public nudity in a club is illegal, but using clubs as platforms for hookers to troll for johns is not.
These views arise from several very Filipino traits:
1) Its considered rude to publicly voice assumptions without concrete proof, even if it's totally obvious. For instance: a foreigner goes to a prostitute bar, and picks up a girl. As he barfines her, the manager might congratulate the girl on her new boyfriend. Obviously, the man's a client not a romantic partner - and she will have a new one tomorrow. But unless the girl herself states that, it is important for her and everyone around her to maintain face and feign ignorance about what actually happened. In fact, it would behoove you to play along. You might make a girl very angry, or make her "get back at you" somehow (by taking something that belongs to you, etc) if you mention to her that she is, in fact, a hooker. This is the reason that nearly all commercial sex in the Philippines is GFE, unless a girl has been "Westernized" by exposure to too many foreigners, or saw the movie "Pretty Woman".
2) It's taboo to either voice, promote, or judge private lifestyle choices, opinions, etc. Unwesternized filipinos will avoid debates and controversial issues by agreeing with anything you say. To disagree in a friendly way is still considered rude. Hence, even if some people might dislike prostitution for religious reasons, they would feel awkward telling the bar owner, or the girl, or the john to stop this behavior. In fact, whenever you see any hard line tactics or politics, there is usually some foreign involvement that triggers it (missionaries, complaint by a foreigner, foreign business interest, etc etc).
In summary - Filipinos care more about what others will say or think, than about their own "salvation/damnation" or principles. I love the "live and let live" hippie culture of this country.