The Society of the Friends of Strathcona Park had asked the court to set aside a permit given to the Clayoquot Wilderness Resort by the Ministry of the Environment.
The society argued the minister who made the decision exceeded his jurisdiction and erred in law when he granted the permit.
But the minister defended his decision, arguing it was reasonable and made only after careful consideration of the relevant factors.
Justice Jon Sigurdson says the minister considered competing concerns and the public interest and concluded it was in the park's best interest to issue the permit.
He dismissed the society's request, adding the minister's decision was reasonable and should not be set aside.