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BUSINESS IN BALI
 
Official figures on the volume of such exports are unavailable as many such items are classified as souvenirs taken home by tourists. However, it is estimated that this home-based industry contributes to one fifth of the island's annual income or as much as US$400 million per annum.

The production of beach-style fashion and designer items is also growing in importance.
The most dynamic subsector of this export business belongs to the undeclared economy, which is controlled by a semi-resident community of several thousand expatriates.

Residing mainly in the Legian-Seminyak area, Sanur and Ubud, these expatriates spend four to eight months on the island to make designs, order products, control quality, organize their marketing networks abroad and, of course, have a good time. They control many of the fashion and designer shops in Kuta, Legian, Sanur and Ubud, often with a local partner or spouse fronting for them.

Their legal status is hazy: most of them stay in Bali with a tourist or "business" visa and go to Singapore for a few days whenever their visa expire. They provide the designs for their products and place direct or indirect orders to individuals or small groups of specialized craftsmen from the hinterland villages.
 
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