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[Abstract = "Currently, the demand in the tourist services market tends to grow rapidly, which proves the tourist attractiveness of the EU member states and the industry’s potential profitability. By satisfying consumer demand, the tourism and hospitality industry positively impacts social and economic development. This impact depends on specific regional characteristics and the potential of each country. The study aims to assess the social and economic potential of the tourism and hospitality industry based on tourist activity in the EU countries. The following scientific methods were used in the research process: the coefficient method, the Euclidean distance method, the ranking method, the grouping method, and the segmentation method. Indicators for assessing the social and economic potential of the tourism and hospitality industry have been defined; an integral indicator has been calculated to assess the social and economic potential of the tourism and hospitality industry in the EU countries; the ranking and grouping of the EU countries according to the social and economic potential of the tourism and hospitality industry development has been carried out; regional features of the social and economic potential of the tourism and hospitality industry of the EU countries have been identified."]