The paper looks aE a number of training and development issues in the hotel sector, as its success depends heavily on the quality of the training and development of those who deliver its services. In its theoretical part, the paper provides evidence of the positive impact that training and development can have on improving the quality of customer service within a hotel environment. In its empirical part, training and development is.sues in Croatian hotel industry were explored. The survey revealed that hotel companies in Croatia have not yet recognized the role that training and development play in the long-term development of their staff and business. Precisely, the survey revealed that they invest in their employees' training and development even less than average Croatian company, although as labor-intensive service companies from the strategically important sector for the Croatian economy they have generally a greater need for trained employees.