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As tourist arrivals to Bali have increased steadily over the past 40 years, the crowds from Kuta and Seminyak have started to shift towards the now booming area of Canggu. Rapid developments present the community with the challenge of preservation vs. economic growth that will impact the destination's future. The objective of this study is to assess, analyze and evaluate the present and future situation of the Canggu area in order to give advice on the match between the area's supply and demand. The study provides Micro and Small Enterprises (MSEs) with recommendations on effective interventions in order to strengthen their strategic position to achieve the destination's preferable future. This study used four different research methods: desk research, participant observations, surveys with tourists, and semi-structured interviews with enterprises. Results show that the most impactful difference between MSEs lies in the level of strategy refinement, which suggests that creating a circular model between MSEs could strengthen the area of Canggu. [ABSTRACT FROM AUTHOR]