The upcoming Milano-Cortina 2026 Winter Olympics are set to have a significant economic impact on Northern Italy. These Games, the first Winter Olympics in Italy since Turin in 2006, will feature events across a wide geographical area. This includes Milan, Cortina d’Ampezzo, Verona, Valtellina, and Val di Fiemme.
Economic Impact of Milano-Cortina 2026 Winter Olympics
According to a report from Banca Ifis, the overall economic impact of the Games is expected to reach €5.3 billion. This figure breaks down as follows:
- €1.1 billion from spending by tourists and operational staff during the event.
- €1.2 billion expected from additional tourist flows in the 12-18 months following the Games.
- €3 billion associated with investments in infrastructure, including the renovation and construction of sports facilities.
Tourism Surge Ahead of the Games
Organizers predict approximately 2.5 million spectators will attend the Games, with visitors likely to stay for an average of three nights. Increasing demand has been reported from hotels, transportation operators, and service providers in not just traditional winter destinations but also cities like Verona and Venice.
Chloe Parkins, Chief Economist at Oxford Economics, noted that Italy is expected to welcome 66 million international tourists in 2026, up from 60 million in 2023. The forecast indicates an increase in tourism spending of €2.9 billion this year, primarily benefiting Northern Italian cities.
Challenges in Comparison to Summer Olympics
Despite the promising outlook, Parkins cautions that the economic impact of Winter Olympics typically falls short of what Summer Olympics can deliver. For instance, the upcoming Paris 2024 Summer Olympics have sold between 10-12 million tickets, significantly more than expected for Milano-Cortina.
The dispersed nature of this Winter Olympics is expected to alleviate transportation bottlenecks and overcrowding issues, allowing more regions to benefit from the event.
Managing Financial Aspects of the Olympics
From a financial perspective, the Milano-Cortina Olympics are projected to be manageable. Mariamena Ruggiero, an analyst at S&P Global Ratings, emphasized that the cost is likely to be lower than the 2015 Milan Expo and significantly less than the 2006 Turin Winter Olympics. S&P estimates the overall cost of the Milano-Cortina Games to be between €5.7 billion and €5.9 billion, approximately 0.3% of Italy’s GDP in 2025. About 63% of this expenditure is expected to be public funding, mainly for infrastructure investments.
Ruggiero pointed out that, although the final count is lower, Torino 2006 created substantial financial pressure on the municipality due to heavy investments in facilities and infrastructure.
Revenue Generation and Local Support
Strong visitor numbers are anticipated to generate revenue sufficient to cover a significant portion of operational costs. Data indicates a 160% increase in foreign arrivals in Northern Italy during the peak of the Games, attracting considerable internal interest as well—a survey shows nearly 80% of residents in affected areas wish to attend at least one event.
The Italian government has approved an additional €200 million for tourism promotion, logistics, and security around the event. Additionally, local municipalities near the Olympic venues are permitted to increase the tourist tax in 2026, directing 50% of the revenue to the central government.
While S&P warns that the long-term economic impact may be limited due to Italy being a top tourist spot in Europe, the social and infrastructural legacy of the event is expected to outlast the Games. Enhanced access, improved transportation systems, and better public spaces will benefit residents and visitors even after the Olympic flame is extinguished.
