The COVID-19 pandemic has presented the global tourism industry with an unprecedented crisis. Despite initial resistance to the outbreak, tourism-dependent economies have gradually adapted to the ongoing crisis in a more resilient manner. However, little is known about how local tourism systems can adapt and recover under the ongoing pressure of pandemic waves, especially for the most vulnerable sectors. As a result, this study seeks to explore how a local tourism system and its vulnerable sectors can rebuild their resilience and adapt to the pressure of the COVID-19 pandemic. To investigate this phenomenon, a mixed method approach was employed, using questionnaires, in-depth interviews and document analysis. The research findings indicate that the pandemic had a widespread impact on the local tourism system, with the accommodation sector being the most vulnerable compared to other business categories. However, adaptive transformation and self-adjusting organization rebuilding were identified as key determinants for increasing survival and recovery capability, with proactive efforts to rebound business activities being critical for the reinforcement of resilience and recovery during and post-pandemic waves. Theoretically, this study contributes to disaster crisis management and destination recovery and provides practical implications for local tourism systems to deal with ongoing pandemic impacts in a more adaptive and resilient manner.