The COVID-19 pandemic has significantly impacted the tourism and hospitality industries worldwide, including the community of Initao, Misamis Oriental, Philippines. This study aims to explore the coping strategies adopted by the affected businesses and the challenges they faced in adapting to the new normal imposed by the pandemic. The research employed a quantitative approach, gathering data through a survey questionnaire. The overall results demonstrate that hotels, resorts, and restaurants constitute a significant portion of the impacted businesses, with financial constraints being a major challenge. To mitigate the pandemic’s effects, businesses sometimes adopted diversification strategies (overall weighted mean: 3.57), digital technologies (3.71), and collaborated with local authorities for support (3.97). The study found that implementing health and safety protocols (weighted mean: 3.29), financial constraints (3.16), and workforce adjustments (3.08) were the primary challenges faced in adapting to the new normal. The research underscores the importance of adaptability, innovation, and collaboration in the recovery and resilience of the tourism and hospitality sectors. Governments, financial institutions, and businesses should focus on targeted assistance, workforce management, and maintaining consumer confidence by implementing health and safety protocols. Furthermore, businesses should continue to explore diversification, digital adoption, and collaboration to overcome the pandemic’s challenges and capitalize on emerging opportunities.