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Plans to designate a popular country park as a nature reserve have been ruled out, leaving campaigners "desperately disappointed".
Deal Town Council (DTC) had asked Dover District Council (DDC) to push forward a proposal to give Betteshanger Country Park reserve status to protect it from development.
There are currently two planning applications pending for the site - for a hotel and surf lagoon - which have sparked concern among conservationists.
Last month DTC asked DDC to use its powers to apply to Natural England for the local nature reserve status.
It believed it could at least protect the 250-acre park from further development if the two current applications are passed.
But DDC has said no to the town council’s strategy, claiming it is unworkable.
Mike Eddy, chairman of DTC’s planning committee, told KentOnline: "I am desperately disappointed. DDC has missed a trick.
“The hotel is not going to produce high-quality jobs for the area.
“The managers are likely to come from outside the area and there would only be two or three of those.
“A hotel makes no sense from the point of view of economic development. People in a hotel a couple of miles away from the town centre are not going to come into it to eat or drink.
“It would be better for economic development to leave it as green space and attract more people.”
DDC is yet to decide on the plans for the 120-bed luxury hotel and multimillion-pound surf lagoon, which would be the first of its kind in Kent.
In a statement, an authority spokesman said: "Land may only be designated as a local nature reserve under the National Parks and Access to the Countryside Act 1949.
“This is when the local authority has a legal interest in the land or by agreement with the owners and occupiers.
“DDC currently has no legal interest in the land.”
The council’s chief executive, Nadeem Aziz, confirmed the authority's position in a letter to Cllr Eddy.
“The owner has made it clear that it does not agree to the declaration of the land as a nature reserve," Mr Aziz wrote.
“The council may not designate land in which it has no legal interest if no agreement exists between the landowner and the local authority to do so.
“The council currently has no legal interest in the land and the owner has confirmed it is not willing to discuss granting any such interest to the council.”
Mr Aziz’s letter came before DTC’s planning committee meeting last Tuesday and members agreed to note the contents.
Cllr Eddy commented afterwards: “DTC has raised the issue formally with the district council. It is now up to other bodies to challenge the district council and secure a future for the important wildlife haven that is Betteshanger."
In a statement, a spokesman for Friends of Betteshanger - a campaign group against development on the park - said "there are two possible futures" for the site.
“These are protecting it as an open space for local people and a wildlife haven for protected species or allowing an inappropriate development that will damage the park's ecology beyond repair and restrict public access," they said.
“We together with local people will continue to campaign for the former, to save the park for future generations.”
In response to the nature reserve bid, the park's owners reiterated their point made when the issue of a nature reserve came up last month.
They stress that if the two applications are developed they would take up less than 10% of the park and wildlife would be given protection.
They add that income is needed because the park is privately owned and funded, with no public subsidy, and is losing money.
A spokesman added: “Since taking ownership of the park in 2019 we have spent millions of pounds finishing the long-awaited visitor centre, cafe and mining heritage museum, and investing in the 231 acres of the park to benefit the community, visitors and wildlife.”
Both planning applications were due to be discussed by DDC’s planning committee last month, but were pulled from the agenda at late notice.