A spokesman told the BBC that health and safety issues remained, and that the student village would be undergoing essential building works this summer, closing 75 per cent of the site.
That brought an angry reaction from Jewish community members, including Myer Rothfeld, who told the BBC: "We are outraged because lighting candles every Friday night for about two hours is part of our religion.
"The university has picked up on a very minor incident when a counter was singed by a candle two years ago.
"We have tried to reach a compromise with the university by suggesting we use candle boxes but they have rejected that idea.
"Fire officers have told us that nobody in their right minds would make an issue of lighting a naked flame under supervision."
Jewish holidaymakers had previously flocked to the resort from Manchester, London and New York.