Alderney's annual kart races have been cancelled due to the "considerable pressure" the hospital is under.
The Guernsey Kart & Motor Club has called off the hill climb and speed trial races which were due to begin on Thursday and run over the weekend.
The public health team had advised the club that if there had been a significant incident medical services would not have been able to cope.
There are currently five Covid cases in Le Mignot Memorial Hospital.
Two people died at the hospital over the weekend, the first deaths linked to the virus in Alderney.
The States of Alderney said the club was advised by Guernsey's public health team that if there was a significant incident the island's "already stretched medical and hospital services would not be able to cope".
A spokesperson said: "We commend them in taking this difficult decision which is clearly the right one in the circumstances.
"We currently have a cluster of Covid-19 cases in the hospital and our healthcare staff and emergency services are under considerable pressure."