Introduction. Following the global post-industrial trends, small towns in Russia are seeking renewal, searching for new economic specializations and strategies. Since more and more Russian small towns, preserving historical and cultural heritage, are aware of the importance of tourism for their own development, the understanding of scientific and practical approaches to the development of the tourism industry and hospitality as the main specialization of the municipal economy has gained a special relevance. Aims. Based on the study of the territory’s social and economic indicators and specific role of tourism in the small historical city and the city district of Zaraysk (the Moscow Region), to offer organizational and management approaches to development of tourism and hospitality industry as the strategy of the territorial development. The following methods were used: theoretical, historical-genetic and economic-geographical research, statistical and comparative analysis. Results. Based on the study of modern theoretical approaches to the development of cities in postindustrial conditions, the choice of tourism and hospitality as a strategic direction of transformation of a small historical city has been justified; the scheme of functioning of the tourism industry of municipality has been worked out; based on the analysis of socio-economic indicators, comparative analysis of competitive characteristics and prospects of tourism development, organizational and management solutions for the development of the tourism industry as the third specialization of the economy of the Zaraisk district have been proposed. Conclusion. Small historical cities of Russia have a number of unique internal factors essential to the formation of competitive advantages in the field of tourism as well as development of the industry as the municipality economy specialization. The degree of awareness, consideration and effective use of the unique factors and resources determines the success of the chosen strategies for the territory development and competitiveness of the emerging tourism industry. The development of tourism requires an integrated approach and should be carried out within the overall strategy and economic and social development plan of the territory.