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Bars will reopen on Magaluf's main party strip later this month as officials get to grips with the coronavirus crisis.
The Balearic government will lift restrictions in a number of so-called "areas of excess tourism” on October 15.
However, nightclubs will remain shut under the new guidelines.
Bars, shops and restaurants selling alcohol on Punta Ballena were told to close down in July in a shock move which left them fearing they would never reopen again.
The Balearic government is expected to maintain a ban on pub crawls, party boats and all drink offers.
Two party strips in Palma are also being allowed to reopen but from Sunday, as opposed to October 15.
Outbreaks of coronavirus in these areas are said to have dropped dramatically during the closures.
The Magaluf party strip will still have to adhere to the general coronavirus safety rules.
All pubs and bars have to close at 1am, and no new customers will be allowed in after midnight.
Other general regulations in the Balearics are also being slightly relaxed.
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Food and drink cannot be consumed during sporting or cultural shows but this will not be the case in cinemas.
The Balearic government has decided to continue with the suspension of activities in children's entertainment venues, the closure of parks and gardens and specific restrictions on nursing homes, especially in terms of visits to residents.
Magaluf's Punta Ballena, which houses the most pubs, bars and clubs on the island, was closed down on July 15 and 16 following a number of incidents which the government considered endangered people's lives through the potential spread of coronavirus.
These included "disgraceful" scenes of British lads drunk in the street and clambering on cars.
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The Calvia business association has opposed the closure and took to the streets to protest, saying they had been treated unfairly and were in danger of going bust.
The positivity rate in the Balearic Islands is 4.4% with a cumulative incidence of 122 cases per 100,000 inhabitants in Majorca, 29 in Minorca, 219 in Ibiza and 57 in Formentera.
While the news has been welcomed by those businesses affected, some are already saying it has come too late – as the season is now over.
And there are also early fears being voiced that if the bars in Magaluf become busy again, it could encourage a third wave of coronavirus which health officials admit they are already planning for.
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