Portugal will host the Formula 1 Portuguese Grand Prix at the Algarve International Circuit in 2027, with a planned return in 2028, signaling a multi-year commitment to the event.

The return follows a history of Portuguese F1 connection, with recent wins by Lewis Hamilton on Portuguese soil and a broader context of races at Porto, Monsanto, and Estoril since 1958, plus the Algarve circuit’s reintroduction in 2020 after the pandemic.

Direct economic effects will include revenues for hotels, restaurants, car rental, and transport, while indirect effects will boost tax revenues generated by these activities.

Local leaders emphasize that large events can mobilize the region and reflect broader national economic benefits.

The fiscal impact is projected to be positive for the state, with net benefits after costs and investments related to hosting the races.

An expected visitor footprint of around 200,000 per year is projected, including roughly 150,000 spectators and more than 50,000 industry professionals, with about 140 million euros in tax revenue anticipated.

Officials forecast about 200,000 visitors per year over three days, implying strong tourism-related activity and tax revenue.

Organizers view the return as a sign of confidence in safety, efficiency, and operational rigor, leveraging regional tourism strengths and improved air connectivity.

The event is framed as a driver of economic activity for the Algarve, potentially benefiting tourism, hospitality, and local businesses.

Pedro Machado, Secretary of State for Tourism, is highlighted as a key figure in advancing the deal, with prior circulation of negotiations.

Efforts to expand direct flights, including to the United States and Madeira, aim to diversify markets beyond traditional European sources.

Public attendance is seen as crucial to demonstrating support for the government, with the circuit’s challenging layout noted as a feature for drivers.