The purpose of this paper is to point out the quality of products and services in the business of tourist companies (Meka and Arxhena) in the municipality of Dragash, as well as their influence on the promotion of competitive advantages that will affect the creativity, breadth of product range, top service and quality, as well as branding. The apartments are located in a series that offer a complete service to guests. Hotel, as well as other companies in tourism, are exposed to significant and rapid changes, thanks to the quality of the business of the touristic ambiance. Subject research. The subject of the research is to determine the quality of products and services in the hotels Arxhena and Meka in the municipality of Dragash. This research includes the application of general elements, ie, the determinant of the quality of products and services (availability, warranty, communication, expertise, standard, service, safety, accountability, security); without which quality service would not be adequately completed. Research goals. Among the more important objectives of research in the research work are: • How satisfied are the tourists with tourist services in the hotel industry in the municipality of Dragash. • How much infrastructure does affect the development of hotel tourism in the municipality of Dragash. • What types of tourists use hotel services in hotel management in Dragash municipality according to their educational status. Research hypotheses. Based on these goals, the following hypothesis is posed: H1: Tourists are satisfied with tourist services in the hotel industry in the municipality of Dragash. H2: Road infrastructure will negatively affect the development of hotel tourism in the municipality of Dragash. H3: The highest number of tourists in the hotel industry in Dragash Municipality is with a high degree of education. Methods of research. In achieving these goals, different scientific methods have been used to: • Inductive method - allows you to arrive at the conclusion based on the characteristics and facts obtained by the inductive method of conclusion. • A deductive method - making conclusions based on specific facts and laws, anticipating future events, and others. • Methods of analysis and synthesis - embracing concepts on their simple parts, analyzing each part in particular. • Comparative method - comparisons or perceptions of differences, common features, similarities, etc. • Descriptive method - a description of the current situation in tourism. The mathematical-statistical method was used in the processing of the sample of the research. In this research, we use the survey method to conduct this research. The obtained results will be processed by statistical analysis and as such will be shown through several tables and graphs. In the process of collecting data we used secondary sources such as: books, websites, various publications, magazines and brochures. Method of choice, size and design of the sample. The sample of respondents includes persons of all ages, professional qualifications, gender and civil status, the questionnaire refers to the provision of services at the Meka and Arxhena Hotel in the municipality of Dragash. The study was conducted on a sample of 98 respondents. The test instrument was designed in the form of a questionnaire containing 12 questions, and the answers are rounded off. The study lasted three months. Time and place of research realization. The place where the research was conducted is the municipality of Dragash. In the research we tried to include two hotels (Arxhena and Meka). Methodologically, these two hotels will dominate the research. Special attention is paid to hotels, products and services, tourist and geographical position of the municipality of Dragash and analysis of research results. Dragash municipality is characterized by limited accommodation capacity, which are not fully used.