In this study, we examine the development of tourism in Hong Kong and its impact on the regional economy amid the COVID-19 pandemic. Drawing on tourism-related theories and the four development stages of tourism in Hong Kong, we employ a SWOT analysis to comprehensively evaluate the city's tourism industry. Our analysis further dissects the economic impact of tourism before and after the onset of COVID-19. Our findings reveal that the pandemic has significantly disrupted Hong Kong's tourism sector, leading to job losses, reduced revenues, and overall economic contraction. However, the crisis has also presented opportunities for innovation, diversification, and strategic adaptation, positioning Hong Kong's tourism industry for a potential rebound as the global situation improves. The study helps to understand the regional economy in the face of unprecedented challenges and provides policy recommendations to support Hong Kong's tourism industry in a post-pandemic world.