Speaking at a Scarborough Borough Council meeting on Thursday, Cllr Bill Chat said the area surrounding the site off Sands Road in Hunmanby was already a “caravan paradise”.
“There is no shortage of caravans in this area – there are absolutely loads,” he said.
The plans – which also included a reception building, cafe, swimming pool, play area and changing rooms – attracted more than 230 objections from residents after first being submitted in October 2021.
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These included objections from Filey Town Council, Hunmanby Parish Council, and Reighton and Speeton Parish Council.
Businessman Wayne Low is behind the plans and previously withdrew an application for 78 lodge-style caravans at the Sands Road site.
His latest proposals were unanimously refused by councillors on Thursday.
The decision comes as Natural England is in the process of launching an examination of designating the Yorkshire Wolds an area of outstanding natural beauty, and there are suggestions that this area should be included.
Speaking at the meeting, resident Nigel Clarke said the development would be “highly visually intrusive” on the open countryside and add to a “straggle” of holiday sites along the coast.
He also said the proposals would “ruin” Hunmanby Gap – a popular beach which stretches two miles wide.
“There’s no shortage of holiday accommodation in this area – the development is simply unnecessary and a burden on infrastructure and the coastal environment,” Mr Clarke said.
Cllr Roberta Swires also said Sands Road is “very narrow” and that it can become “dangerous” in the summer when visitor numbers increase.
“This is absolutely the most unsuitable place,” she said.
“We have got The Bay which keeps extending and extending – we really don’t need any more caravan sites around this beautiful area
“The refusal of this is the only way.”