Scarborough Council' s planning committee today gave the scheme at Sawdon Pines Golf Course the thumbs up following a site visit earlier this week.
The application, from Ian Palmer who has owned the site with his family since 2015, was subject to more than 25 objections from residents of the village and Brompton By Sawdon Parish Council.
Speaking at the meeting today, one of the objectors, Paul Worsley said that Scarborough Council could be "sued" if someone sustained an injury from a sliced shot.
He told councillors: "There is no precedent anywhere for approving caravans to be sited on an operational golf course."
He added: "Golf balls do not respect designated areas."
Concerns had also been raised by an Environmental Health Commercial Regulation officer that there was a risk that users of the lodges could be struck by mishit golf balls from the course.
A report prepared for councillors said that changes had since been made to the scheme to address these issues and the objection had been withdrawn.
Objectors were also worried about the impact of traffic into the quiet area.
Ward Cllr David Jeffels said he had "never known" a unified objection against a plan from the village.
Cllr Jeffels said the issue of golf balls "pales into insignificance" to that of the access to and from the site and the effect on roads in the area.
He added: "To allow this development will be inappropriate to say the least due to the road safety implications to the users of the lodges and the local residents."
Sawdon Pines Golf Course is an existing facility that comprises a 9-hole, 1,805-yard golf course.
The proposal will see the siting of 14 lodge-style caravans for holiday accommodation. Part of Geasea Cottage on the site will be demolished and an existing building will be used to create a reception, office, games room, laundry and storage facilities for the business.
Speaking in favour of the proposals, Cllr Hazel Lynskey said that the council would not be fined if someone was hit by a golf ball as it was the responsibility of the owner of the site.
She said: "I feel very sorry that we have got local people who want to invest money, which we desperately need, and to provide jobs and that there is so much hassle against them."
Earlier, the councillors heard from the applicant's agent who said that the plan was to create "high-quality" award-winning accommodation and reminded members that the Highways Agency had signed off on the access to and from the site.
The application was approved by the committee.