Under the condition of tough competition, lack of proper support for tourist industry at the state level, and necessity for development and bringing this sector to a new level, which consists in capability for offering a consumer a high-quality and competitive product, the necessity for search for effective solutions is obvious. One of the perspective and effective means for solving the problems of tourist sphere at present is formation and development of tourist clusters. The article studies existing approaches to determination of tourist cluster, analyzes the current state of internal tourism, and views factors which hinder the creation of competitive product and factors which stipulate the increase of effectiveness of functioning of tourist clusters at regional level
