This study examined the influence of hotel classification governance on destination competitiveness in Kenya, with a particular focus on how governance dimensions contribute to destination quality, tourist confidence, destination image, and overall tourism competitiveness. Grounded in governance theory, this descriptive cross-sectional study surveyed 139 classified accommodation facilities selected proportionally from 205 facilities in Kenya using Yamane’s formula and simple random sampling. Data were collected through a reliable structured questionnaire (Cronbach’s α = 0.835) and analyzed using descriptive and inferential statistics. Hotel classification governance significantly and positively influenced destination competitiveness (β = 0.637, R² = 0.406, p < 0.001). However, weak reassessment mechanisms (M = 1.55), despite strong support for service quality and public–private collaboration, reveal a credibility gap between the formal governance framework and its practical enforcement. This study contributes to tourism governance literature by providing empirical evidence from the African tourism context that hotel classification governance is a strategic predictor of destination competitiveness through its integrated governance dimensions. The findings suggest that strengthening hotel classification governance can enhance destination image, tourist confidence, service quality, and tourism competitiveness. Policymakers and tourism regulators should strengthen institutional credibility, reassessment mechanisms, stakeholder collaboration, and digital regulatory frameworks to improve Kenya’s tourism competitiveness. The cross-sectional, quantitative design limited the depth of examination of governance dynamics and contextual institutional factors. Nonetheless, the study contributes to the tourism governance literature by empirically demonstrating that hotel classification governance serves as a strategic predictor of destination competitiveness.