Strict COVID-19 control measures in Henan China and worldwide led to a drop in consumption, disruptions in production, and challenges in global supply chains, affecting businesses globally. Enterprises are also facing difficulties, and product shortages and financial market volatility have been observed. Amidst these challenges, some companies, especially in the hospitality industry, are turning to cloud computing technologies for benefits. However, there is a research gap regarding the adoption on business performance in the context of hotel, particularly in the post-pandemic world. Expanding the literature in this area is crucial to understanding its potential effects. The study utilizes the TOE combined with the DOI to analyze the adoption process and its impacts. The study evaluates the RCC in enhancing SMEs’ technological and environmental capabilities. Data collection involved a structured questionnaire survey conducted among 481 SMEs. Findings reveal that cloud computing adoption significantly boosts both technological and environmental capacities. It also provides actionable recommendations for policymakers and industry leaders to facilitate the digital transformation of SMEs within the tourism industry.