Small businesses dominate the tourism and hospitality industry worldwide and are of critical importance for the competitiveness of destinations. Small family hotel businesses are characterised by a number of specific business processes which generate particular training and educational needs. It is increasingly clear that small businesses are not miniature versions of larger ones, but they have different structures, priorities and strategic objectives. This paper investigates a number of management areas, such as planning, strategy development and behaviour in these enterprises, to determine skill and competency gaps. A survey of small family hotel businesses in Austria was carried out in 2003. Performance, growth and internal management procedures were assessed to analyse problem areas and to identify the lacking skills in the tourism industry. The results demonstrate areas of tourism training and education for family hotel businesses.