Dunkeld House Hotel has been granted permission to build eight holiday lodges within its grounds.
There were 41 letters of objection to the proposal including objections from Dunkeld And Birnam Community Council and time-share owners of properties at Dunkeld House.
But the hotel's scaled-down plans - from 14 lodges to eight - met the unanimous approval of Perth and Kinross councillors.
The plans went before Perth and Kinross Council's Planning and Placemaking Committee on Wednesday, November 23.
The approved plans are for lodges within a dell surrounded by steep sloping sides. The revised plans propose to retain all the existing trees with "minimal impact on them". The lodges would be set within open areas clear of trees.
Dunkeld and Birnam Community Council's reasons for objection included concerns about the impact on natural heritage, light pollution, increased traffic and a lack of public consultation.
Dunkeld House Lodges Club Committee chairman William Gunn addressed councillors on behalf of timeshare owners of accommodation within the hotel complex. The group has more than 800 owners. Their objection stated they had property "within 20 metres of the application site and directly facing it".
He said the mass of bluebells in "one of Perthshire's stunning ancient woodlands" was "striking" and expressed fears these spring flowers would be "decimated" by the development.
He told the committee: "We feel there are parts within the report that need to be challenged.
"The proposal does not complement or contribute positively to the quality of the environment. It does not examine alternative locations within the hotel grounds or present a business case for development. It does not detail any economic benefit and numbers of jobs to be created. It does not show the hotel bookings are at capacity or that there is a local shortfall in holiday accommodation."
He finished: "Building here should be seen as a last resort."
Conservative councillor Bob Brawn argued: "Once in, surely nature has a way of reclaiming itself."
SNP councillor and convener Ian Massie moved for approval.
This was seconded by local Strathtay Conservative councillor Ian James who said: "There's nothing we could use to actually turn this down.
"As for footprints, they are basically eight rooms supplementary to the hotel. It's not like eight houses."
The plans were unanimously approved.
After the meeting Strathtay Liberal Democrat Bailie Claire McLaren - who sits on the committee - said: "In approving the application of new holiday lodges, this will help to sustain the existing resort.
"I understand the concerns of the objectors in relation to a potential short-term impact on the landscape. I am confident the wider Dunkeld area will continue to attract visitors and the impact of the lodges will not deter from the overall beauty."
