Traders have expressed their shock and concern after Scarborough Council decided to shut Marine Drive and Royal Albert Drive to stop a gathering of cars.
A cruise has been organised to the town on Sunday May 28, the Bank Holiday weekend, which would see hundreds, maybe thousands of modified cars descend on the town.
The Scarborough News understands that in response the council last night agreed to close the road from 10am until 10pm in a bid to stop the car enthusiasts coming.
It will mean the loss of 800 car parking spaces on one of the busiest weekends of the year. The Scarborough News has been told the closue will run from The Sands to the Luna Park roundabout.
Past cruises have drawn complaints from residents, though there are no figures for how many.
John Senior, chairman of the South Bay, said: "We are saying to people they are not welcome in Scarborough.
"If there is a problem with these sorts of events then we should be dealing with it through education rather than this heavy-handed approach.
"What is next? Are we banning the scooter rally if a couple of them don't behave, which some do when the come? Are we going to ban motorbikes as one or two may ride too fast?
"We are punishing the many for the sins of the few.
"The South Bay Traders are very worried that this is setting a dangerous precedent for the future."
The Scarborough News contacted Cllr John Nock who confirmed that the decision had been made to close the road but declined to give any information.
He said: "We will be issuing a press release later."
When asked which committee had made the decision he said it was an "ad hoc committee".