“A golden opportunity for the Algarve and for the whole of Portugal” – this is how the announcement that the Formula 1 Grand Prix, in the 2027 and 2028 editions, will once again take place at the Autódromo de Portimão was welcomed, by the entities that made up the working group national team mobilized for this objective (which integrated elements from the Government, Parkalgar, Turismo de Portugal and Turismo do Algarve).
Algarve Tourism predicts that the holding of Formula 1 will generate economic impacts in the region of more than €150 million each year – taking into account that the event that took place at the Autódromo de Portimão in 2020, in which it could only receive a third of the spectators due to the restrictions of the covid-19 pandemic, resulted in a total impact of €100 million.
“It’s a unique stage to boost the entire economy of the region, I don’t see any sector where the event can’t have an impact”, highlights André Gomes, president of the Algarve Tourism Region.
The forecast of revenue collected from the Formula 1 event includes a ‘combined effect’ of direct and indirect impacts. As André Gomes explained, the direct impacts include revenue generated in hotels, restaurants, car rental or transport, among a series of associated tourist services. And indirect effects include tax revenue generated from these events, among other factors.
“I would say that in the Algarve everything is somehow related to tourism and the Formula 1 Grand Prix will be a unique stage for local producers and suppliers to leverage their activities, starting with the primary sector, such as agriculture”, highlights the president of the tourism region.
The Government expects to raise revenue of €140 million, in terms of taxes alone, in the three days that Formula 1 will take place in the Algarve in 2027, to which will be added the relative revenue with the event in 2028, according to Manuel Castro Almeida, Minister of Economy, this Tuesday.
The Autódromo Internacional do Algarve (AIA) will once again host the Formula 1 Grand Prix, after being chosen to hold the event in 2020 and 2021, in the midst of the pandemic crisis. In 2020, with the health restrictions in force, the event managed to have a third of the spectators that its capacity allows, still achieving a total economic impact for the region that amounted to €100 million. But in 2021 the rules were tightened, forcing Formula 1 to take place at the Portimão race track “completely empty, without spectators”.
Reinforcement of air routes in the pipeline for the Algarve
The scenario that opens up for 2027 and 2028 with Formula 1 in the Algarve is completely different from what occurred in the years in which the covid-19 pandemic persisted, which is seen by the promoting entities as a sign of “confidence” of the organization of the automobile event in the “safety, efficiency and high operational rigor” that were ensured by the country in these critical times.
To this “desire” of the Formula 1 organization to return to the Algarve, the president of the Tourism Region adds the “experience generated with the excellence of the offer we have in the region, along with the work we ensured to guarantee air connectivity, which allowed us to have this announcement today”.
200,000 spectators are expected at the Portimão race track over the three days during which the Formula 1 Grand Prix races will take place in 2027
D.R.
Holding Formula 1 in 2027 and 2028 will reinforce the commitment to capturing new air routes to the Algarve, according to André Gomes. “We have a year and a half to work on strengthening air connectivity for the region, so that we can reach 2027 with the best offers”.
In 2025, the head of the Tourism Region highlights in this field “the success of the first year of direct flights to the United States”, also remembering that Faro airport had, for the first time, direct connections to Funchal in June. The growth of routes in the Algarve also came from routes to Northern and Central Europe, as is the case with the new flights between Riga and Faro, which allowed “the diversification of markets and growth in value”.
Algarve with “the lowest seasonality rate in the last decade”
The supply of beds in the Algarve is more than enough to host the Formula 1 Grand Prix, which takes place over three days, with a total of 200,000 spectators expected. The region has around 670 classified tourist developments, totaling more than 130 thousand bedsto which are added more than 40 thousand local accommodations with a capacity of less than ten beds, according to André Gomes.
The notoriety expected with the Formula 1 event is expected to bear fruit in the Algarve as early as 2026, according to the president of the Tourism Region, stressing that the expected growth will no longer be in the double digits, as in the post-pandemic period.
“The Algarve is growing in a balanced way, more in revenue than in overnight stays, which means that it is increasing in value, and with a performance that takes into account the relationship with local communities and tourist satisfaction”, notes the person in charge.
“We are registering growth outside of the high season, the seasonality rate in the Algarve is the lowest in the last decade, which reflects a joint effort by the private and public sector to prove that the region is more than sun and beaches, and investing in the diversification of markets beyond the traditional ones”, reiterates André Gomes.
The seasonality rate in the Algarve, which in 2024 was 43%, has now dropped to 38%, “and our plan aims to reach 37% in 2028”, says the president of the Tourism Region.
“We are on track to have a thriving economy in the Algarve throughout the year. Gone are the times when the region only had activity in two or three months of the year”, concludes André Gomes.
Fulfilling “the dream” of the founder of Parkalgar
The return of the Formula 1 Grand Prix to the Algarve also means, for local entities, a tribute of memory to Paulo Pinheiro, the historic founder of Parkalgar, promoter of the Autódromo Internacional do Algarve, who passed away prematurely at the age of 52, in July 2024.
“It was Paulo Pinheiro’s dream to have Formula 1 in the Algarve again, we have a lot to thank him for, this is the result of long and continuous work since the 2021 edition, when he was still with us. We really want to continue with the legacy he left us, and pursue his dreams”, emphasizes the president of the Algarve Tourism Region.
The Government highlights the “huge notoriety” that the holding of Formula 1 will bring to Portugal, which has 827 million fans worldwide and an audience that reaches, on average, around 70 million spectators during each race weekend.
“We are prepared to host this event, showing the best of Portuguese hospitality and our entrepreneurial capacity”, guarantees Pedro Machado, sSecretary of State for Tourism, Commerce and Services, in a statement issued by Turismo de Portugal.
“The return of Formula 1 to Portugal in 2027 and 2028 confirms the country’s growing recognition as a reference destination for world-class events and is fully aligned with the Government’s strategy for the tourism sector and the national economy”, concluded Pedro Machado.
The Government’s announcement comes one day after, in statements to Jornal de Negócios, the mayor of Cascais, Nuno Piteira Lopes, stated his intention to start managing the Estoril race track with a view to having Formula 1 there again in 2028.