In a ruling made public this week, the Salzburg court found that the hotel in the western ski resort of Saint Johann im Pongau had discriminated against two Austrian Muslim women by preventing them from wearing the garment.
After a heated argument with the manager, who said the burkini was unhygienic and made other guests feel uncomfortable, the women filed a complaint last year.
The local authorities then fined the hotel €100 (£85) in February, prompting the establishment’s manager to appeal.
But in late June the court rejected the appeal and ordered the hotel to pay a €20 fee on top of the fine to cover procedural costs.
It found that the hotel manager’s argument that the garment was unhygienic “does not hold water, as burkinis are made from the same materials as other swimwear and routine water checks found no irregularities”.
However, the presiding judge told Agence France-Presse that the ruling would not set a nationwide precedent “as indirect discrimination is permissible under certain conditions”.
Austria does not explicitly restrict Muslim dress for women and girls above the age of 14. But the law forbids face coverings in public spaces, in effect preventing Muslim women from wearing the burqa and niqab.
Agence France-Press