The development of the tourism services sector ("temporary accommodation and catering") across key indicators and regions is analyzed. The growth rates are identified, the trends and problems of using the potential of the tourism services sector of Ukraine and its regions are outlined. The study establishes that despite the general positive moments of development of the sphere "Temporary accommodation and catering", there is a heterogeneity of tourism development in terms of regions and regional deformations of tourism development, and lack of tendencies to overcome regional disparities. There are inconsistencies in the indicators with a close relationship between the directions and rates of growth. The levels of shadowing of the tourism services sector as a hidden reserve for the development of the tourism sector of Ukraine and its regions, their dynamics for the period from 2013 to 2018, and features and level of shadowing of services by enterprises and individual entrepreneurs in this area are calculated. The paper proves that since 2013, the vast majority of regions have improved their official statistics and removed part of the business in the field of tourism services from the shadow trade; however, as of 2018, about a fifth part of this area (according to key performance indicators) continues to be in the shadows, and the regions with the largest volumes of these services (Kyiv, first of all) have significant shares of business in the "shadow". For a deeper understanding of the nature and factors influencing the shadowing of the sphere of "Temporary accommodation and catering", and a more accurate analysis of the whole sphere, the growth rates by individual indicators of economic entities (legal entities and individuals-entrepreneurs) are compared. The most probable ways of shadowing the economic activity of business entities in the field of tourism are identified, which primarily include hiring workers (methods of employment, wages), the formation of income and profits, and ways to remove their shares from taxation.