Abstract The critical imbalance between skilled labour supply and demand in the Australian hospitality industry is frequently noted. While workforce development issues are driving the agendas of industry and government alike there is little evidence to suggest a reverse in this imbalance in the near future. While increasing importance is being attributed to this issue, there is little in the literature that extends beyond the conceptual and offers practical solutions that might arrest current trends and fortify the labour bases available to industry. This paper consolidates current research and reveals key issues underpinning the current skills shortage. The paper then identifies ways and means that industry, academia, and governments can work together to overcome the current crisis of skills shortages within the hospitality sector. The contribution of this paper lies in the fact the it clearly demonstrates the need for the sector to embrace a fundamental tenet of today's knowledge-based economy - creating innovative solutions in a dynamic environment through tri-lateral collaborations involving industry, academia, and government. The effective management of such collaboration is perhaps where the greatest challenge rests.