The paper refers with the development of approaches to strategic management and development of the tourism and hospitality industry in the regions. The authors justified the creation of a strategy selection model that would take into account the possible strategic positions in organization of the tourism and hospitality industry, as well as unexpected strategic changes in the external business environment that might occur on its path. The model is based on the system of strategy selection and classification of unexpected strategic changes in the external business environment. It is proved that the application of the strategic management concept in tourism and hospitality industry is possible only taking into account the specifics of the organization’s activities, interests of service consumers, existing competitive conditions, and the sustainable development principles. It is revealed that there is a need in a holistic management system that would meet current and future requirements of the dynamic development of the tourism and hospitality industry, and can be implemented at different levels including regional level.

The article is concerned with methodological approaches to development strategies for tourism and hospitality industry enterprises. It has been found that most regions, local tourist destinations, tourism and hospitality industry businesses do not have any clear formalized strategy. It was determined that some tourism and hospitality industry businesses apply only individual elements of strategic management, i.e. do not have an integrated system of strategic management. Methodological tools have been proposed for elaborating development strategies for tourism and hospitality industry enterprises, which show that strategic management, which is methodological by nature, i.e. is characterized by the conceptual approach and panoramic vision, cannot give an exact and clear view of the tourism industry's future. It was proved that strategic management cannot be limited to a set of universal and routine rules, procedures or schemes. It was defined that strategic management requires great efforts, time and resources to make the activity of tourism and hospitality industry businesses remarkable.