Councillors agreed with residents that it would detract from the Area of Outstanding Natural Beauty in the Lincolnshire Wolds.
The scheme proposed 18 lodges off Main Road in Fotherby, near Louth, on a field that was previously used to build chicken sheds.
Audience members had to be reminded to keep quiet during the planning meeting debate.
Kelly Casswell, the applicant, said: “It will be kept a small development and not commercialised, keeping the area quiet and tranquil. High class and environmentally friendly developments should be welcomed.”
She said she had 12 years of experience in the industry providing high-quality lodges and “there are no white caravans on any of my sites.”
Fotherby Parish Councillor Christina Chen opposed the plan, saying: “This land is in Area of Outstanding Natural Beauty which prohibits exactly this kind of development except in exceptional circumstances.”
She added: “The goal is profit, not conservation.”
The application had attracted over 100 objections, many about the traffic impact on the quiet village.
Resident Nick Ball told the committee: “This will be the largest single development ever in Fotherby – a village so quiet that pigeons fall asleep in the road.”
He concluded that there was “No need for this development” to applause from audience.
Planning committee members were divided over whether planning rules let them refuse the scheme.
Councillor Billy Brooks: “This is exactly the sort of high-quality development we want in East Lindsey, but do we want them in a small village like this? Unfortunately the policies leave us between a rock and a hard place.”
Councillor Terry Knowles proposed that they go against officers’ recommendation to approve it.
After a tied vote of four to four (with one abstention), chairman Councillor Dick Edgington cast the deciding vote to turn the application down.