Sports minister Richard Caborn praised Brighton and Hove for leading the way in the multi-billion pound tourism industry.
He said the city had eight million visitors a year who sustained 13,000 jobs and was in the top ten destinations for overseas visitors.
Mr Caborn was at the Brighton Centre to welcome a training agreement for people who will build the £220 million King Alfred redevelopment in Hove.
Developer Karis Holdings has drawn up an employment framework with the Transport and General Workers' Union (TGWU) before work begins.
It will insist its contractors provide work experience and on-the-job training to help plug the skills gap in the construction industry.
The partnership, believed to be the first of its kind in the UK, aims to create a steady supply of skilled workers for future building projects in Brighton and Hove.
Mr Caborn said the new leisure centre at the King Alfred would be finished in 2011, a year before Britain held the Olympic Games if its bid was successful.
He said the 236 affordable homes in a scheme of 590 would be widely welcomed in a city with housing problems.
Mr Caborn said: "I don't know how you got Frank Gehry as one of the architects. He's original, eccentric and inventive."
Mr Gehry's Guggenheim Museum in Bilbao has had a tremendous effect on regeneration.
He said the other architects, Piers Gough and HOK, were also leaders in their fields.
Heather James, community co-ordinator for Karis Holdings, said: "This is one of the most significant developments in Britain in the last 30 years.
"Frank Gehry is one of the world's greatest architects. He will meet the requirements of the site and will capture the spirit of Brighton and Hove."
The King Alfred would provide 650 jobs when the project was finished and between 400 and 750 during the five years of construction.
Karis boss Josh Arghiros started work on a building site when he was 15 and knew the need for proper training.
Ms James said there was a great skills shortage and workers needed to be properly trained into a safe, welcoming environment.
Karis is in talks with the Learning and Skills Council and City College Brighton and Hove about linking the training project to recognised qualifications. Bob Blackman, national construction secretary for the TGWU, said: "It is vital that local people have the opportunity for training.
"This scheme will provide a world-class leisure and sports centre and the 40 per cent affordable housing will benefit Brighton and Hove."
George Brumwell, chairman of the Construction Skills Certification Scheme and who represents the union UCATT, said: "You have to look at a trained and responsible labour force."
Workers would be encouraged to spend a lifetime in an industry which was safe and had opportunities for progress.
But he warned that for it to succeed, contractors would have to be carefully monitored.
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