Tourism has become one the most quickly developing economic sectors. The creation of sustainable and competitive tourism can be observed and initiated all over the world, so the formation of Tourism Destination Management (TDM) system has become an important way of development worldwide. All over the world there are lots of successful TDM systems, so we have to work hard to achieve success in our homeland as well. I think that a new tourism development concept has positive effects on the development of domestic tourism. The tourism sector may expand more dynamically with cooperation of the players. The institutional development is useful, but the organizations must be established in harmony with the characteristics of each destination and need to represent the interests of the participants. In my research, I examine the development of the Hungarian Tourism Destination Management system, the use of the funds, and the context between TDM funds and infrastructural development. Finally, I intend to present good practices which can be adapted to other tourist destinations, so that everyone can benefit from the Hungarian tourism sector.

Abstract. Modern tourism was developed owing to the economic, social and technological changes in the XX century. The establishment of sustainable and competitive tourism is a trend that can be observed worldwide. Therefore, in countries interested in tourism, such as Hungary, it has become an important development direction to establish an institutional structure based on tourism destination management (TDM). Over the past decade developing organizations did not affect only our country's most advanced touristic areas (eg.: Heviz, Lake Balaton, Siofok, Hajdúszoboszló, Buk), but also an increasing number of destination organizations were set up in rural areas dealing with a variety of economic and social problems. Along this the question could be raised about what the role of these associations were / is, and how efficiently could / do they operate.The questions are whether this institutionalized cooperation can work effectively in our country; what effects do they have in the life of a region; and if these effects can be measured, which indicators are the most suitable ones to do so?