Another 102 static caravans are in prospect for Chapel St Leonards.
At an East Lindsey planning committee, members approved a change of use of a field to the east of Skegness Road to accommodate the ‘vans, three lakes and internal roadways.
The vote in favour of the application by Blue Anchor Leisure Ltd was five-three, with two abstentions.
Noting strong objections from villagers, some 460 of whom had signed a protest petition, Coun Terry Aldridge insisted: “Enough is enough - the infrastructure of the village is already under immense strain.”
But Coun Richard Avison responded: “We should support a viable business.”
Thursday’s committee noted that there had been some 17 letters or emails of support from businesses in Chapel, Ingoldmells, Skegness and Wainfleet.
All are likely to benefit from further growth in the tourism economy.
At the last count, Chapel had more than 6,000 caravans within the village and its boundaries.
A public meeting will be held in Chapel on Monday, to discuss coastal caravan development. The special meeting has been organised by East Lindsey District Council and will be held at Chapel Community Hall at 7pm.
Individual development proposals that are currently being considered through the planning process will not be discussed.