South Africa since the liberation in 1994 has faced a lot of changes. The changes include being a member of the international community. As part of the international community, South Africa is finding itself largely faced by the challenges associated with this position. Looking at other countries South Africa is realizing that the world is looking at better ways of educating their people and organizing their education and training systems so that they might gain the edge in an increasingly competitive economic global environment. Success and survival in such a world demands that South Africa has a national education and training system that provides quality learning and promotes the development of a nation that is committed to life-long learning. Institutions of higher education in South Africa are currently changing their present education system to conform to a Competency-Based Training (CBT) system. This system has only been planned but not implemented yet and it is not clear how CBT will be implemented, especially how the learners are going to be assessed. Competency-Based Assessment (CBA) is an integral part of CBT that needs particular attention if the new system is to succeed. The key aims of this thesis are to investigate the current assessment policy and practice at the Canberra Institute of Technology (CIT) underpinned by Competency- Based Training system. The project will describe and analyze the Competency-Based Assessment system used within CIT's CBT system. The project will focus on: Observing classroom practice of CBA, analyzing students' and teachers' perceptions of their involvement with CBA, and analyzing employers' perceptions of the effectiveness of CBA. The main aim of this thesis is to suggest recommendations for an assessment model that will be suitable to implement within hospitality training institutions in South Africa.