<![CDATA[The tourism sector serves as a major backbone of the economy in Bali Province, evident through its significant contribution to the Gross Regional Domestic Product (GRDP), surpassing other sectors. This sector has also created extensive job opportunities for the local population through accommodations, dining, transportation, souvenir crafts, tour guiding, and micro-businesses. However, high dependency on a single sector can lead to economic vulnerability if not managed properly. This research aims to describe the dynamics of the tourism sector in Bali Province. Utilizing a qualitative approach based on literature review, the study analyzes various sources, including academic articles, government reports, and news articles, to identify factors driving tourism development, challenges faced, and opportunities to be exploited. Findings reveal that cultural richness, natural beauty, and infrastructure development are key drivers of tourism growth in Bali. Nonetheless, tourism development is challenged by environmental degradation due to massive construction, dependency on international tourist arrivals vulnerable to global changes and crises, and difficulties in managing increasing tourist traffic. To address these challenges, the research emphasizes the importance of sustainable and digital-based tourism opportunities. Sustainable tourism practices will mitigate negative environmental impacts and preserve local cultural heritage. Additionally, the digitalization of tourism can enhance marketing strategies and tourism management. Based on these findings, recommendations include strengthening policies focused on sustainability, developing culture-based tourism products, employing digital marketing and management, and improving infrastructure and service quality. Keywords: Bali, Challenges, Driving Factors, Opportunities, Tourism]]>
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