A holidaymaker was in disbelief when she saw a ski resort use drinks sparklers in its wooden bar, just days after a fire in Switzerland killed at least 40 people and left more than 100 injured. 

Exclusive footage, obtained by the Daily Mail, shows revellers blissfully dancing shoulder-to-shoulder at the popular Schatzi bar, in Ishgl, Austria.

Ignited ice fountain candles can be seen in three glasses on the counter, just metres from the Austrian Alps bar's wooden ceiling. 

The bar is located just across the border from Switzerland, where a New Year's Eve blaze inside the Le Constellation bar, located in the Alpine town of Crans-Montana, in the Valais canton region, killed at least 40 people and injured 119 others.

It is believed the devastating fire that swept across the bar's foam acoustic insulation was started from a fountain candle held aloft on a Champagne bottle. 

A Briton, who did not wish to be named, was inside the Schatzi bar on Friday, January 2, while on holiday in the ski resort and told the Mail she was 'horrified' to see staff using the handheld firework.      

'We are on holiday in the Austrian ski resort of Ishgl, very close to the Swiss border, in fact, we have skied over to Switzerland, and yesterday evening [January 2] we went into a bar called Schatzi bar and were horrified to see the bar people using sparklers in drinks with a wooden roof and packed bar full of people, ' she said.

'We couldn't believe this was happening days after the tragic event in the ski resort in Switzerland which killed 40 people.'  

A spokesperson for the bar told the Mail it has stopped using fountain candles since January 3 as a 'precautionary measure' but stressed the building meets the required fire-resistance and safety standards.  

Exclusive footage, obtained by the Daily Mail, shows revellers blissfully dancing shoulder-to-shoulder at the five-star Elizabeth Arthotel's popular Schatzi bar, in Ishgl, Austria, where drinks sparklers can be seen on the counter

Ignited sparklers can be seen in three glasses on the counter, just metres from the Austrian Alps bar's wooden ceiling

The bar comes under the same ownership as the luxury family-run adults-only Elizabeth Arthotel, which has a rooftop bar and infinity pool. 

The Schatzi bar, where women in skimpy gingham outfits dance on the bar, is described on the hotel's website as 'one of Ischgl's hottest après-ski locations'.

The spokesperson added: 'First and foremost, everyone at the Elizabeth Arthotel and Schatzi Bar was deeply shocked and saddened by the tragic events in neighbouring Switzerland. Our thoughts are with the victims, their families, and all those affected.

'In light of the incident in Crans-Montana and out of an abundance of caution, Schatzi Bar has stopped the use of sparklers as a precautionary measure; this came into effect on 3rd January.