The aim of this research is to analyze the impact of public policy on innovation, competitiveness, and performance of 100 small and medium-sized enterprises in the tourism sector, in the Department of Valle del Cauca, Colombia. For this purpose, a quantitative empirical study was conducted using the equation model, which is considered ideal for research within the services sector. Theoretically, the model proves that a positive relationship exists between the constructs analyzed, which reinforces the empirical evidence that public policies constitute a dynamic axis for the organizational development of the tourism sector, as it favors the dynamics of innovation, competitiveness, and performance.