This scientific study has researched whether EU funds within projects have been used for the development of the hospitality industry. The study has investigated three municipalities and these have been Hammarö, Säffle and Karlstad. These three municipalities have been chosen because they are close to each other geographically, two small municipalities and one large municipality. The study has provided an insight into how these three municipalities work with financing projects in the hospitality industry via EU funds. The reason why these three municipalities were chosen for this study is because we wanted to compare how small municipalities differ from a large municipality and how they work with the development of the tourism industry, but mainly with EU funds. The interest in the study has come from lectures from many different actors who have mentioned that the economic aspect has been the part that has held back the development of the hospitality industry. The study has been conducted as a qualitative study using qualitative semi-structured interviews. Furthermore, the study has used document analysis which has been to go through the municipalities' regional development plans, destination development plans and population change depending on the size of the municipality and what conditions this creates linked to grant opportunities.  Document analyzes and interviews are what have helped us arrive at a result.  Results show that these three municipalities have different conditions when it comes to EU grants and this can cause them to differ depending on which municipality and how they invest in the tourism industry, but also how they work with EU funds. The result shows that if municipalities were to start using more EU funds and have the skills to do so, this could result in it contributing to greater development on the site. But the study will also go into the fact that there are more aspects within this and not just financial aspects.