The purpose of the article is to develop directions for improving the competitiveness of the tourism business in Ukraine and to analyze the problems that complicate the formation and development of strategic, socio-cultural potential and human capital. The main components of the tourism business, which includes a wide range of activities aimed at meeting the needs and wishes of tourists (tourist accommodation facilities, transportation services, travel agencies and tour operators, restaurants, cafes and other catering establishments, entertainment and cultural services, recreation and health services, shops and souvenir shops, etc), are highlighted. In the context of the war, Ukraine's tourism business faces several serious challenges that complicate the formation and development of its strategic potential: instability, deteriorating image, reduced investment, loss of infrastructure, and social and economic problems. The main negative factors affecting the formation and development of human capital, which is one of the key components of the tourism sector's success, are security, employee migration, lack of qualifications, decreased demand for labour, and the psychological state of employees. The socio-cultural potential has a particularly significant impact on the efficiency and competitiveness of the tourism business, as it reflects cultural values, readiness for change, and other aspects that may affect the perception and distribution of tourism products. The main problems of socio-cultural potential development include a decline in cultural activity, damage to historical and cultural monuments, loss of cultural heritage, a decline in cultural tourism, changes in cultural stereotypes, and a decrease in investment in cultural development. The main areas for improving the competitiveness of Ukraine's tourism business include the development of tourism infrastructure, improving the quality of tourism services, promoting Ukraine in the global tourism market, creating a favourable environment for tourism development, and developing new types of tourism. Solving these problems requires a comprehensive approach and joint efforts of the government, an international coalition, industry organizations and the public.