Elaboration of state program, to manage the tourism branch development and of regional complex targeted programs as well as creation of efficient public touristic policy is the urgent issue. Public tourism management policy requires well-balanced approach on the basis of complex analysis with the use of practical experience in planning and prognosis of hotel and restaurant business development both in the country overall and in its regions. Successful functioning of hotel and restaurant business strives for new ways to solve the issues of its efficient activity through improvement of their management. In case of efficient public management the hotel and restaurant business is the major social and economic sphere that is the source of currency inflow to state budget and the indicator of social and cultural development of a country. Nowadays the problem of efficient public management of hotel and restaurant business is the matter of utmost urgency in our country. Lately there have been numerous researches devoted to various aspects of organization and management of tourism industry, including the hotel and restaurant business, contributing to adjusting and forming of the necessary information basis for research and revealing its role. The paper aims to analyze the existing theoretical and practical methods of hotel and restaurant business management as the component of tourism industry as well as the methodology and methods of forming and development of tourism business under the conditions of changing external environment. The results of theoretical research of methodological and methodical problems on public regulation of tourism industry and its components, in particular the hotel and restaurant business, are presented. The following aspects are found to be included in the mechanism of tourism policy implementation: 1) elaboration of targeted programs on tourism development at the level of a country and its regions; 2) development of specific measures to achieve the set strategic objective; 3) public regulation of tourism branch development. Analysis conducted by the World Tourism Organization testifies to the fact that in the majority of countries in the world the public tourism policy is implemented directly by the central executive authorities – national tourism organizations, other institutes, as well as indirectly through legislative leverages of tourism infrastructure maintenance and international policy. In conclusion, we can affirm that public regulation of hotel and restaurant business as the component of tourism industry is one of the mechanisms to implement public policy in the tourism sphere. 

tourism, hotel and restaurant business, public regulation, legislation, tourism business