Hospitality and tourism firms face their "greatest-ever challenge" in ensuring they have the staff to make the most of the Olympics in 2012.

Sector Skills Council People1st believes the industry will need to recruit an extra one million people by 2012 simply to replace the 47% of workers who leave the industry each year. This figure does not include the extra demands for skilled staff posed by the Olympics.

People 1st released a survey earlier this year in which 60% of firms admitted that they did not have the skills in place to maximise the potential benefit of the games.

Chief executive Brian Wisdom said several caterers at the 2000 Olympics in Sydney lost sales because they were short of staff, had not trained them sufficiently, and had problems getting staff into the grounds because they had lost their passes.

"We really need to start working now to make sure that we all have the right number of people with the right skills to mount a really successful Olympics," stressed Wisdom.

"If we address these issues early on and put skills and people at the heart of the Olympics agenda, then we will succeed."

The council wants the industry to help it shape a strategy to deal with current and future skills needs at a series of events to be held next month in London.

Events will be held for catering and hospitality firms on 9 and 19 August, and for hotel companies on 8 and 16 August.

For details, e-mail madalen.ercolano@people1st.co.uk or phone 01895 817041.