The global hospitality industry is changing with every passing year. Beach holidays, skiing holidays, cultural and educational holidays, and health and wellbeing holidays are the mainstays of the contemporary tourism industry. Traditional types and forms of holiday are losing ground, with shorter holidays now winning out over longer ones, and active breaks preferred to passive ones. Russia is currently in a position to develop attractive tourism products in line with these new market trends. For instance, over the period 20152018, the skiing and spa resorts of the North Caucasus have seen demand for tourism services in these areas grow apace, while sites of historical and cultural interest and nature reserves are seeing more visitors every year. However, the principal limiting factor in the development of the hospitality industry remains the insufficient capacity of the accommodation and other necessary infrastructure in areas popular with tourists across the majority of regions of the Russian Federation. How can we solve the problems inherent in attracting investment to build modern tourism infrastructure? What are the strategic priorities for developing tourism?