What’s the economic impact of the Winter Olympics?

Northern Italy is in the global spotlight as the Milano–Cortina Winter Olympics unfold across the region, marking Italy’s first Winter Games since Turin hosted the event two decades ago.

Unlike previous editions, the Games will unfold across a dispersed footprint spanning Milan, Cortina d’Ampezzo, Verona, Valtellina, and Val di Fiemme, blending Italy’s fashion, culture, and Alpine tourism into a multi-destination showcase.

According to a report by Banca Ifis, the overall economic impact of the Games is expected to reach €5.3bn.

Of that, €1.1bn is expected to come from spending by tourists and operational staff during the event itself, while a further €1.2bn is projected from continued tourism flows in the following 12 to 18 months.

An additional €3bn is attributed to infrastructure and legacy investments, with both sporting and civil assets being either upgraded or constructed anew.

Organisers anticipate around 2.5 million spectators over the course of the Games, with average stays of three nights and visitors engaging in multiple local experiences.

Hotels, transport operators, and service providers in Milan, Cortina and beyond are reporting surging demand, with real-time booking data reflecting heightened activity not only in traditional winter hubs but also in cities like Verona and Venice.

The tourism sector, already a pillar of the Italian economy, is experiencing strong momentum during the Games.

According to Chloe Parkins, lead economist at Oxford Economics, Italy is on course to welcome 66 million international tourists in 2026, up from 60 million in 2023.

The economist anticipates that tourism spending will rise by €2.9bn this year alone, with cities in Northern Italy outperforming national trends.

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However, the overall tourism impact won’t be as big as summer Olympics.

“Economic and tourism impacts are typically smaller for the Winter Games than the summer event,” Parkins said, adding that Paris 2024 sold about 10–12 million tickets — around five times the expected volume for Milano-Cortina.

Oxford Economics also highlighted that the dispersed hosting model appears to be limiting the displacement effects often associated with mega-events.

By spreading competitions across several regions, transport bottlenecks and fears of overcrowding are reduced, helping destinations signal that they remain open for business beyond Olympic venues.

From a public finance perspective, the Games appear manageable.

Mariamena Ruggiero, analyst at S&P Global Ratings, said the Milano–Cortina Olympics have proved less costly than Milan’s Expo 2015 and are far less burdensome than the Turin 2006 Winter Games.

S&P estimates total costs of the Milano-Cortina Winter Olympics at between €5.7bn and €5.9bn, equivalent to around 0.3% of Italy’s 2025 GDP.

About 63% of spending is public, largely funded by the central government and directed towards infrastructure investment.

“Milano-Cortina cost less than those in Sochi and Beijing but more than any other winter games held in the past 20 years,” Ruggiero said.

Despite costing less overall, the agency indicated that the Turin 2006 Winter Olympics severely strained the city’s finances because Turin assumed much of the venue and infrastructure spending, leading to deteriorating budget metrics and a heavy debt burden.

“We expect solid visitor numbers will translate into revenues that should largely compensate for the operating costs,” Ruggiero said.

Visa cardholders’ flight and accommodation data already suggest a 160% increase in arrivals from abroad to northern Italy during the core Games period. Domestic interest is also high, with nearly 80% of residents in relevant areas expressing a desire to attend at least one event.

The Italian government has also approved €200mn in additional spending for tourism promotion, logistics, and security.

Municipalities within 30 kilometres of Olympic venues are authorised to raise their tourist tax rates during 2026, with 50% of the proceeds allocated to the central government.

S&P cautions that the long-term economic impact will be limited, given Italy’s status as one of Europe’s top three tourist destinations.

Yet, the social and infrastructural legacy is expected to endure. Enhanced accessibility, upgraded transport systems, and improved public venues will serve residents and tourists alike well after the Olympic flame is extinguished.