The announcement, which had been expected, was made on Monday evening.
The Austrian government said openings of the hospitality sector would be postponed until at least Easter, which takes place on the first weekend in April.
Bars and restaurants are still allowed to offer takeaway food and drinks.
There was a slight degree of hope for the sector however, with the Austrian government saying it would again meet with experts and state leaders on March 1st to reconsider the current course of action.
Austrian Health Minister Rudolf Anschober said the government had rejected efforts from some Austrian cafes and bars to open gardens and outside areas as the temperature continues to rise in March.
Tourism Minister Elisabeth Köstinger lamented the “bitter news for gastronomy and tourism… which have been closed for several months and are suffering enormously from this situation”.
Mario Pulker, gastro-chairman of the Vienna Chamber of Commerce, agreed, saying the news was a “bitter pill” for the industry.
Pulker called upon the government to provide more financial help and assistance to those in the sector.