Anticipating the spread of COVID-19, a number of tourist sites in various provinces in Indonesia are temporarily closed including in the province of Aceh. Aceh Province is a tourist destination that has cultural diversity and natural beauty to invite tourists to visit and witness it. The decline in the number of tourist visits in Indonesia certainly has a significant effect on the number of tourist visits in Aceh Province. The development of the tourism sector in the city of Sabang requires the right direction and strategy so that benefits for the regional economy remain profitable even in the midst of Covid 19. In the long term the sustainability of the tourism sector will depend on maintaining a balance between the interests of the economic aspect. This study aims to analyze the estimated value of the sector’s economic losses. tourism, tourism sector development strategies and Sabang City government policies related to Tourism Areas during the COVID-19 pandemic in Sabang City. This research is survey research with a qualitative approach, using SWOT. The sample in this study amounted to 62 respondents. The results of this study indicate that the value of the economic loss in the tourism sector in Sabang City is estimated at IDR 3,950,000,000 or only 41% of revenue before the COVID-19 pandemic. So the decline in tourism sector revenue due to COVID-19 was 59%. This loss is the value of lost revenue from tourism business actors including hotel managers and restaurant managers in the Sabang Island Tourism Area. The right strategy to be implemented in the development of the Sabang tourism sector is a diversification strategy (quadrant II). Alternative strategies that can be implemented are optimizing the use of social media as a means of promotion, collaborating with elements of the government, increasing access to financing for tourism business actors, increasing incentives for tourism business actors, airlines, travel agents, and promotions in the form of ticket discounts, providing incentives for group incentive trips/famtrips and promotions through influence Acceleration of infrastructure development in priority tourist destinations; Tourism promotions, exhibitions and events are gradually starting to be activated. One of the policies of the Sabang City Government regarding tourism sector policies is contained in Sabang Mayor Regulation Number 30 of 2020 concerning the application of discipline and health protocols as an effort to prevent and control the spread of the Covid virus which is quite effective in reducing the number of tourist visits to Sabang Island both at tourist attractions, hotels , and restaurants. Based on the results of this study, the authors suggest that the Sabang City Government can provide assistance to tourism business actors not only in the form of relief in paying taxes, but also in the form of direct financial assistance. The management of the tourism business is tightening and emphasizing the health protocol for visiting tourists in order to reduce the spread of the COVID-19 pandemic. Especially tourists coming from outside should be checked for the completeness of the letter not infected with the COVID-19 pandemic and the COVID-19 vaccine card. Requiring vaccinations for tourists so that tourism activities can continue during the COVID-19 pandemic with a lower possibility of COVID-19 infection.