At the current stage of social development, the economic significance of tourism as one of the dynamically developing sectors of the global economy is increasing. Tourism development is of great importance for the country, its regions, municipalities, and society. Emerging trends, including positive results in recent years, indicate that the rise of the tourism industry in the Republic of Dagestan, which began several years ago, is increasingly becoming sustainable and long-term. These and other positive processes are considered crucial for attracting investors. This article examines the specifics of tourism development in the region and identifies the main challenges hindering its development. It substantiates the need to create and develop new infrastructure for tourism and recreation facilities, as well as further develop the recreation and wellness industry. Key areas for tourism development are proposed, forming the core of a model for accelerating economic growth in the Republic of Dagestan.