This research project has explored the issues surrounding East Gippsland Institute of TAFE's (EGTAFE) inability to expand the training in Hospitality and Tourism (H&T). EGTAFE is a small regional public provider of training covering a large area in regional Victoria and it has a pivotal role in the provision of knowledge and skills to assist Gippsland's transition to an innovative economy (www.egtafe.vic.edu.au/corporate/corporate). During this project discussions were held with a variety of stakeholders, namely local business owner/operators in the H&T Industry, researching issues such as industry skills requirements and also employers perception of EGTAFE. Action Research was employed as the methodology of this research project, as the cyclical process of planning, acting, observing and reflecting has facilitated the understanding and development of improvements to practices across the Hospitality and Service Industries (H&SI) team. Interviews, questionnaires and workshops were all part of the data collection method. As a result of this research project the main outcomes that have emerged are 1) a better understanding of the needs of employers and employees; and 2) the development of a strong collaborative partnership with employers. Due to the connections with industry that were made because of this research project, the H&SI team is now in a position not only to deliver industry skills requirements, but also to be a partner in the process