Perth College has been denied money for courses crucial to both the local and national economy, according to its chief executive.
Margaret Munckton, who is also acting principal at the college, told MSPs that cuts and tough competition for cash meant no funding could be found to provide hospitality training.
The Scottish Government has hailed a rise in both spending and visits by international and domestic tourists during the first half of 2013.
Ms Munckton said: “The bid process is oversubscribed every year. As a college, Perth has been denied any funding for hospitality students.”
Her comments came as the Scottish Parliament’s public audit committee heard quality of education is improving despite the impact of budget cuts.
However, two principals accepted student numbers and class choices have been reduced as they respond to Scottish Government priorities.
It follows a report by Audit Scotland, which found college incomes have fallen since 2010-11, with a £56 million reduction in grant funding from the Scottish Funding Council. The sector faces an overall 11% real-terms reduction in revenue grant funding from the Scottish Government between 2011-12 and 2014-15, auditors said.
Committee convener Hugh Henry, a Labour MSP, asked how colleges can still offer the same level of service.
Audrey Cumberford, principal and chief executive of West College Scotland, said: “There has been a reduction in the provision.
“In terms of the quality, actually our performance indicators are increasing and that remains our absolute key focus.”
Susan Walsh, principal and chief executive of Glasgow Clyde College, said 14,700 fewer students are enrolled than would have been at the former Cardonald, Langside and Anniesland colleges in 2009, but insisted the quality has improved.
Audit Scotland said the income drop has been met by cost savings, mainly by cutting college staff, and that more cuts could be required in the future.
Mr Henry said colleges face an “unprecedented financial squeeze”, with the merger process also “representing a major challenge for Scotland’s colleges”.