The London Development Agency will invest £3.5m over the next four years in a bid to train and recruit high-quality chefs, hotel managers, tour guides and other tourism and hospitality staff for London.

According to a recent report by the Agency, between one-third and two-fifths of hospitality firms in the capital have difficulty recruiting staff. The hospitality sector accounts for some 430,000 jobs in London and is massively important to the city's economy.

In response to the report, the LDA has put together an action plan which will run courses for catering staff, among other things, in skills such as cigar choice and cocktail making.

The courses begin in January 2005 and will provide training for around 1,500 people already in the industry, as well as supplying jobs to around 250 unemployed people.

Manny Lewis, chief executive of the LDA said: “The quality of service that customers receive is a hugely important factor in the attractiveness of any business in this sector. This project aims to help improve the experience for visitors and attract more high-spending business tourists to London.”