The show, follows a group of single men and women vying to keep their place in a Spanish villa, and viewers can choose who they want to vote out each week.
Following the steamy episode, the beauty pageant organisers said on Facebook that they had no problem with sex, but weren't impressed with it being broadcast on television.
"The feedback we have received from pageant insiders and members of the general public is such that we cannot promote Zara as a positive role model moving forward, pageant officials wrote.
"We wholly understand that everyone makes mistakes, but Zara, as an ambassador for Miss Great Britain, simply did not uphold the responsibility expected of the title."
