Formula 1 will return to Portugal in 2027 under a two-year agreement backed by the Portuguese government, positioning the sport as a strategic lever for tourism growth and regional economic development in the Algarve.
The deal, agreed with Turismo de Portugal and circuit promoter Parkalgar, will see the Portuguese Grand Prix staged at the Autodromo Internacional do Algarve – better known as Portimao – reinforcing F1’s value as a global destination marketing platform amid rising competition for calendar slots.
For Portugal, the return of F1 – replacing the Dutch Grand Prix at Zandvoort – is framed as a commercial and economic initiative rather than a purely sporting one, with the event expected to drive inbound tourism, SME activity and international visibility for the southern region.
Manuel Castro Almeida, Minister of Economy and Territorial Cohesion of Portugal, said the Grand Prix would have a measurable impact across the economy.
“Portugal is back on the Formula 1 map,” he said.
“The F1 Grande Premio de Portugal will have a direct impact on economic activity, generating opportunities throughout the economic chain – from tourism to trade, and services to SMEs (small and medium-sized enterprises) – projecting the country as a competitive and reliable destination.
“Hosting the grand prix in the Algarve reinforces our regional development strategy, enhancing the value of the territories and creating opportunities for local economies.
“This will be an event that, in addition to being a source of prestige for our country, will enhance Portugal’s image throughout the world.”
Hosting the grand prix in the Algarve reinforces our regional development strategy, enhancing the value of the territories and creating opportunities for local economies.
Manuel Castro Almeida
The Algarve last hosted F1 in 2020 and 2021, when Portimao played a critical role in enabling the championship to continue during the COVID-19 pandemic.
Since then, global demand to host grands prix has intensified, with governments increasingly viewing F1 as a high-impact tourism and investment asset.
“I’m delighted to see Portimao return to the Formula 1 calendar and for the sport to continue to ignite the passion of our incredible Portuguese fanbase,” said F1 President and Chief Executive Officer Stefano Domenicali.
“The interest and demand to host a Formula 1 Grand Prix is the highest that it has ever been, so I would like to thank Prime Minister, Luis Montenegro, the Minister of Economy and Territorial Cohesion of Portugal, Manuel Castro Almeida, the Secretary of State for Tourism, Commerce and Services, Pedro Machado, President of Turismo de Portugal, Carlos Abade, President of the Algarve Tourist Board, Andre Gomes and CEO and Chairman of the Algarve International Circuit, Jaime Costa for their support in bringing F1 back to Portugal.”
Portugal has hosted F1 across multiple eras and venues, but the modern return of Portimao reflects a broader shift in how governments and promoters justify hosting rights, focusing on economic return, destination branding and long-term regional value.
With the Algarve deal secured for 2027 and 2028, Portugal joins a growing list of markets using F1 as a central pillar of tourism and economic strategy, rather than a standalone sporting spectacle.
