This research examines the influence of government policies on the development of hospitality services in Davao City, Philippines. Using a qualitative research approach with semi-structured interviews and document analysis, the study investigates how local government regulations, incentives, and public-private partnerships impact the hospitality sector’s growth, quality standards, and competitiveness. Results reveal that proactive government interventions, such as tourism infrastructure investment, business permitting reforms, and training programs, significantly facilitate industry development. However, challenges such as policy inconsistency, bureaucratic hurdles, and limited stakeholder engagement persist. The findings suggest that sustained policy innovation and multi-sectoral collaboration are vital for strengthening Davao City’s hospitality industry. Recommendations for policy improvement and future research are discussed.