PurposeThe tourism sector’s fragility lends significance to mental health and wellbeing, especially amongst workers in the hotel and tourism sectors. However, stakeholders’ subjective wellbeing and mental health in these sectors due to the coronavirus disease 2019 (COVID-19) pandemic remain under-researched, especially for destinations with unique selling propositions (USPs). Thus, this study investigates the effects of the worldwide COVID-19 pandemic on various stakeholders in Kerala, India. In particular, the authors assess the mental health and welfare of those involved in the tourism sector with an eye on how the COVID-19 pandemic has influenced the field’s psychological and technical developments.Design/methodology/approachThis study employs an ethnographic approach to understanding the idiosyncratic experiences of stakeholders using in-depth interviews (n = 68), focus group interviews (n = 3) and participant observation for 14 months. Reflexive thematic analysis was used to analyse the data.FindingsThe findings reveal the shifting perceptions in the tourism sector’s workforce by detailing various societal, technical and physical transformations, especially amongst the younger generations. The resultant psychological mapping generates a framework of the emotional perspectives of stakeholders during each stage of the pandemic. This study also highlights the urgency of crisis-management training for the workforce.Originality/valueThe COVID-19 pandemic has affected all spheres of global business, resulting in unprecedented challenges in both personal and professional life. The sector’s fragility lends significance to mental health and wellbeing, especially amongst workers in the hotel and tourism sectors. However, the subjective wellbeing and mental health of stakeholders in these sectors due to the COVID-19 pandemic remain under-researched, especially for the developing destinations with USPs.