How Bali became Asia’s creative playground

Bali may be famed for its postcard-perfect beaches, timeworn temples, and its allure as a haven for spiritual seekers, but its identity extends far beyond the wellness circuit. The island has quietly emerged as fertile ground for brand-building, where lifestyle labels and creative entrepreneurs come not just to retreat, but to root. This evolution is more than a cultural shift, it’s an economic imperative. Tourism contributes roughly 6% to Indonesia’s GDP, making it a vital pillar of the national economy. According to Toni Chan, founder of August Society, an Indonesian swimwear brand that uses Bali as a manufacturing hub, the island is home to very creative people, and the labor remains affordable. Why brands choose Bali “I find that Bali — and Indonesia in general — has a much more design-centric and artistic approach compared to many other countries, which makes it a great fit for us,” Chan says. According to her, sustainability is central to her brand’s ethos. For instance, her beachwear is made from regenerated nylon sourced from recycled plastic bottles and waste materials. When it comes to her customer base, Chan says that most of her brand’s buyers are Chinese and Southeast Asian, with a smaller portion of Western customers reached primarily through online sales. There is also growing interest among tourists in sustainable swimwear that offers greater coverage and protection. East Asian travelers, particularly Chinese customers, tend to prioritize beachwear with UV protection, while Southeast Asian consumers often seek more modest styles that align with cultural preferences. A 2024 survey in China revealed that 70.6% of respondents wanted sun protection clothing to be multifunctional and integrated into daily life, indicating that there are numerous opportunities for local or neighboring country brands targeting Chinese tourists as their primary markets. Cultural fit meets commercial edge As a result, the evolving consumer preferences point to a broader opportunity for brands — especially those offering culturally attuned yet functional products — to position Bali as a key target market. Bali’s status as a top holiday destination for Chinese and international tourists has made it attractive not only for leisure travel, but also for creative retail expansion. This trend is reinforced by the steady return of Chinese tourists to pre-pandemic levels. According to Indonesia’s state news agency Antara, Chinese tourists spend an average of eight to 11 days in the country, with per-visit expenditures reaching approximately $1,386 — a figure comparable to that of European visitors. Research also indicates a rising awareness among Chinese consumers regarding sustainable brands. According to Deloitte’s 2023 report, Chinese shoppers are willing to pay a 9% to 15% premium for sustainable products. Notably, 44% of Chinese Gen Z respondents acknowledge a personal responsibility to support environmental and ecological conservation through their fashion choices. Building on this shift in consumer values, other regional brands are also turning to Bali as a production base. One example is One Puram, a Singaporean label that manufactures part of its resort wear collection on the island. The move aligns with growing demand among Gen Z consumers — with 47% valuing sustainable products made from natural materials or renewable resources above all else. Today’s consumers increasingly favor products made from eco-friendly, recyclable materials — and they’re willing to pay more for designs that offer both comfort and style. Sustainable fashion, which blends aesthetics with environmental responsibility, has become a marker of identity, positioning wearers as both “eco-chic” and advocates of “natural beauty.” According to a May 2023 survey by Japanese market research firm Rakuten Insight, around 87% of Chinese respondents reported following at least one influencer on social media, with the majority admitting to purchasing products endorsed by them, highlighting a significant opportunity for Indonesia — not only to attract tourists, but also to position itself as a brand-building hub for neighboring markets. Several manufacturers in Bali are allowing brands to order in smaller quantities, which enables labels to save production costs. “Manufacturing in Bali was easier to get started as a small brand, just because the quantities that the manufacturers require were a lot lower,” Chan says. Tourism rebounds, branding booms Nevertheless, the path forward is evident: by welcoming a broader array of brands, drawing in higher-spending visitors, and harmonizing Bali’s creative economy with sustainable practices and global movements, the island can secure both prosperity and long-term resilience. The expansion of brands correlates strongly with the rebound in Chinese tourist arrivals to Bali — now nearing pre-pandemic levels. The Jakarta Post reports that Rajeev Menon, Marriott International’s President for Asia-Pacific (excluding China), points to a clear uptick in hotel and resort occupancy driven by Chinese travelers. Chinese arrivals to Indonesia have soared by 72% YoY, highlighting a swift and robust rebound in the tourism sector. The rebound has translated into striking figures: Bali welcomed 270,000 Chinese tourists between January and July 2024 — a 91.3% increase compared to the same period last year, according to Statistics Indonesia. This upswing not only surpasses regional recovery averages, but also signals Chinese travelers’ renewed confidence in Bali as a premier destination. To further attract Chinese tourists, strategic promotion is also key. Alexander Nayoan, head of human resources training at the Indonesian Hotel and Restaurant Association (PHRI), says the government should deepen collaborations with influencers, leveraging their reach to invite more Chinese travelers to experience Bali firsthand. The content creation imperative “It still needs improvement,” Nayoan adds. “At the national level, Indonesia should invest more in television promotion — through films or documentaries that highlight its cuisine, destinations, and culture — much like Thailand, Malaysia, and the Philippines have done.” He also suggests that bringing in and compensating more international influencers could boost the country’s appeal. If, in the process, visitors are inspired by Bali’s scenery to launch a business, he says, it could offer added value to the local economy. In 2023, the Ministry of Tourism partnered with Chinese influencers to promote Bali. The Tourism Ministry of Indonesia’s spokesperson says that the Ministry has worked with Chinese influencers to boost tourism in Bali, but there are several inputs that need to be improved, such as arranging island-hopping bundles to boost convenience, and several spots need to improve the accommodations on offer. “It is suggested that Wonderful Indonesia’s social media accounts produce and disseminate additional travel advice and tactics content for different demographics, along with suggestions for useful hotels, places, and modes of transportation,” the ministry spokesperson said in a statement. Building Indonesia’s brand economy Esther Sri Astuti, an economist at the Institute for Development of Economics and Finance, note that Indonesia holds considerable potential for cultivating local brands abroad, including in Singapore and other neighboring countries. She adds that these companies could consider setting up manufacturing bases in Indonesia, given the country’s well-established textile industry, which provides employment to a significant portion of the workforce. To attract brand creators from neighboring countries, Astuti emphasized the need for key improvements. Chief among them are lowering airfares to Indonesia, enhancing domestic flight connectivity to encourage exploration beyond primary destinations, and improving the management of mass organizations that have, at times, stirred public unrest or disrupted investment and business activity. “This means that besides offering high-quality products, Indonesia must also ensure lower production costs compared to competing countries. The challenge, however, lies in demands from workers for higher wages due to inflation,” Astuti said, “but productivity must also be considered, especially since Indonesia has a relatively high number of public holidays.” Furthermore, efforts to attract more Chinese tourists to Bali should go hand in hand with encouraging growth in the creative economy, helping to strengthen local brand development. This, in turn, could boost both tourist spending and broader investment in the region. Lastly, Chan believes that Bali holds strong potential not only to develop and manufacture more brands in the future, but also to enhance brand identity while continuing to draw more tourists.

How Bali became Asia’s creative playground

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Published June 17, 2025

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How Bali became Asia’s creative playground