Increasing demand of the population in a healthy way of lifestyle and in an active recreation in combination with recreational and health-improving procedures actualize the problem of theoretical grounding and legislative security for the formation of tourist destinations of the sanatorium-resort type, determining the advantages of the territory for creating a destination and its impact on the socio-economic development of the community or region. The provision of resource supply for the formation of a recreational and health- improving destination of a sanatorium-resort type and the use of mineral water «Bukovynska» both for satisfaction of basic needs, and in recreational purposes, are an urgent problem requiring a solution. The purpose of the research is to determine the regulatory and legal support and the main criteria for the formation of the sanatorium-resort type tourist destination, to establish the tourist and recreational advantages of the territory of the village of Budenets for the creation of a destination in the Chudei Rural United Territorial Community based on the spring of mineral water «Bukovynska» and to determine its impact on socio-economic development of the community. The legislation of Ukraine, the works of domestic and foreign scientists, methods of analysis and theoretical generalization to determine the legal support of the processes of forming a tourist destination, analysis and synthesis to establish the tourist and recreational advantages of the territorial community served as the theoretical and methodological basis for writing the article. Based on the analysis of the legislation of Ukraine, it was established that a legal field has been created for the formation of tourist destinations of the sanatorium-resort type, which ECO N O MI CS AN D M ANA G EM EN T H OSP I TAL I TY ENTERPRISES Issue I (89), 2023 79 ensures the effective use of the natural and recreational potential of certain territories. The article focuses on the development of general and special infrastructure, in particular, the presence of treatment and rehabilitation facilities, accommodation and catering enterprises, which must meet approved standards and other regulatory documents. The analysis of the capabilities of the Chudei rural united territorial community contributed to the identification of advantages for the formation of a tourist destination of the sanatorium-resort type in the village of Budenets based on a source of mineral water «Bukovynska». The article highlights the main components of the economic impact that arise during the formation and functioning of a tourist destination in the territorial space of the community. The Chudei Territorial Community has been identified as a basic area for the formation and development of a sanatorium-resort-type tourist destination, which will contribute to the effective use of local potential, the development of entrepreneurship and the provision of income to the community budget, the attraction of investment resources, the development of general infrastructure and the overall economic development of the community.