Modern geopolitical conditions of the Republic of Crimea cause scientific interest in the mechanism and results of adaptation of the regional market structures to new economic conditions, in particular the market of recreational services, the synergetic effect of which can be an incentive for the development of the economy of the region in the context of the sustainable development strategy. The aim of the study is to assess the competitive positions of the subjects of the Southern Federal district as the region of the greatest tourist and recreational activity in the Russian Federation with the identification of the strengths and weaknesses of the regional tourism product of the Republic of Crimea and the formulating ways of its optimization. The method of scoring was used to assess the competitiveness of the regions; the polygons of competitiveness were constructed to visualize the results of the evaluation. It was found that the Republic of Crimea has the most stable position in the group of physical and geographical parameters, having a comfortable climate for various types of recreational activities, favorable conditions for the organization of bathing and beach recreation, high attractiveness of landscapes of mountain and coastal areas. According to the group of socio-economic parameters the Republic of Crimea is significantly inferior to the Krasnodar region and Rostov region. The low standard of living in the region, low efficiency of regional social reproduction worsen the competitive position, that affects the functioning of related industries of the recreational market and the formation of the overall investment climate in the region. According to the group of indicators of the functioning of the tourist and recreational sphere, the Republic of Crimea is second only to the Krasnodar territory, but in almost all respects. The directions of strengthening the competitive position of the regional tourism product of the Republic of Crimea should be the improvement of tourism infrastructure, diversification of types and forms of tourist and recreational services, taking into account the availability of non-actualized resources on the basis of innovation and investment market model of development.