The Circuit de Barcelona-Catalunya has confirmed public health measures will prevent the event from welcoming spectators to the grandstands in May.
In February, the Spanish Grand Prix organisers announced plans to host thousands of spectators at the May race weekend.
The extension of countermeasures to protect from the Covid-19 pandemic in the region includes the borders remaining closed until at least April 26.
With no guarantee the measures will be relaxed ahead of the Spanish Grand Prix weekend - May 7-9 - the venue was left with no choice but to alter its plans.
A statement from the circuit read: "PROCICAT (the Catalan Civil Protection Office) has notified Circuit de Barcelona-Catalunya, that the Grand Prix cannot be staged under the conditions defined in the Spectator Access Protocol, as the current regulations in terms of public health for the containment of the epidemic outbreak of the COVID-19 pandemic (SLT/971/2021 of 8 April 2021) are effective until 26 April.
"Under these conditions, it is impossible to establish with absolute certainty whether or not the epidemic and welfare situation on 7, 8 and 9 May will allow for a further relaxation of the measures that do also restrict mobility at county level, which consequently would hinder fans from outside the Vallès Oriental region from coming to the racetrack.
"Moreover, following the communication of the Departments of the Interior and Health of the Catalan Government, neither the epidemiological situation, nor, especially, the situation in hospitals allow expecting right now a review of the current measures or a relevant liberalisation, considering that the dates of the Grand Prix are quite close.
"Given this situation, the Circuit Management has proceeded to notify Formula One Management Limited that the FORMULA 1 ARAMCO GRAN PREMIO DE ESPAÑA 2021 will have to be staged without spectator attendance."
It has been confirmed all fans holding tickets for the event will be refunded with circuit members to be 'compensated proportionally'.
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