Tourism is a significant contributor to the economy of some countries. There are multiple countries, especially in South Asia, whose economies are largely reliant on tourism. The World Tourism and Travel Council estimates that the tourism sector contributed USD 234 billion, or 6.6% of the region’s GDP, in 2019 in South Asia. Countries such as Maldives and Mauritius have faced huge issues since the COVID-19 pandemic brought about a complete shutdown of their tourism industries. The revival of tourism is a must for these counties; otherwise, their post-pandemic economic recovery will be majorly affected. This paper analyzes the effect of COVID-19 on the tourism sector in South Asia and sets out solutions for rebuilding it. This paper elaborates on the solutions mentioned above by emphasizing certain aspects. Firstly, this paper recommends that governments use the general equilibrium model as suggested by the report of the United Nations Conference on Trade and Development (UNCTAD). The UNCTAD report concerns the effect of COVID-19 on tourism. The general equilibrium model can be used to assess the implications of COVID-19 on the tourism sector effectively. Using this model, countries can accurately evaluate the effects of the tourism shock on the economy. Particular attention should be placed on developing countries wherein social progress has faced issues by the fall of tourism revenues. This paper suggests using the South Asian Association of Regional Cooperation (SAARC) as a platform for setting up tourism bubbles to deal with this issue.