'We will have 3,000 to 4,000 new hotel rooms opening this year and next. This means that we will be looking for many new staff on top of existing vacancies. We estimate that in total more than 2,000 staff will be required.'

Mr Lu said the fact that the government had recently allocated 10 sites specifically for the development of new hotels was a sign of the underlying strength of the sector, spurred by the high average occupancy rate of the existing rooms.

He said that instead of seeing Macau as a direct competitor, it should be regarded as a source of additional business.

'Hong Kong and Macau serve different market segments, and it is a complementary relationship. Each has its advantages, and Macau's dependence on Hong Kong as a gateway makes the relationship even stronger.'

He said that measures announced in the financial secretary's recent budget speech would further boost the sector. In particular, the elimination of accommodation tax and of the duty on wine were seen as positive changes. 'These initiatives will help strengthen Hong Kong's position as a tourist hub over the next five to 10 years, and will have a positive impact almost immediately,' Mr Lu said.

At The Peninsula Hong Kong, the city's longest established luxury hotel which celebrated its 80th anniversary last December, the mood is similarly confident.

The hotel's general manager Rainy Chan said there was no need to lose any sleep over regional competition chasing the tourist dollar. She also believed that the inexorable rise of Macau as a nearby attraction would become a long-term benefit.

'Hong Kong has a stronger base of business travellers. On the leisure front, Macau is competing for the regional market, but this helps to create new opportunities, as many visitors will stop over in Hong Kong en route,' she said.

But there was no room for complacency, she said, so the Peninsula was pursuing various initiatives to maintain standards and retain its edge.

The hotel has the highest staff-to-guest ratio in Hong Kong, with about 900 staff for 300 rooms, and is known for having one of the lowest employee turnover rates in the industry. Even so, there is always a need for new recruits to fill openings.

At the Renaissance Harbour View Hotel Hong Kong, which has about 650 staff, high levels of room occupancy and general turnover mean that new recruits for both operational and management positions are needed.

'For entry level jobs, a degree in hospitality management would be an advantage. However, a positive attitude and passion for the service industry plays an important role. Managerial positions require relevant experience from the industry,' said Lily Cheng Ha-kwan, human resources manger of the Renaissance Harbour View Hotel.

'We feel that the hospitality industry will continue to grow in Hong Kong,' Ms Cheng said. 'The Asian market is booming, new hotels are planned, and local tourism figures are expected to grow.'

She said the hotel would enhance its services and facilities and focus on staff training and development in the coming months.

'We are doing phase-by-phase renovation to offer guests a new experience, and have initiatives to help attract, train and retain staff,' Ms Cheng said.

Almost everyone in the industry also expects this year's Beijing Olympic Games to provide a significant boost. Not only will thousands of visitors stop over on their way to or from Beijing, but the fact that Hong Kong is hosting the equestrian events will make the city an Olympic destination in its own right.

Sha Tin's Royal Park Hotel will benefit most directly after being selected as one of the centres to accommodate competitors and their support teams.

The hotel has already spent a significant sum on preparations and improvements.

'After renovation work last year when we invested HK$300million on upgrading the hotel, we are confident that we will be able to provide the finest service to all our guests, including our Olympic guests this summer,' said Royal Park Hotel public relations manager Anthea Tsang Chiu-hang.