The Hindu New Year, Nyepi, is celebrated in the spring by a day of silence. On this day everyone stays at home and tourists are encouraged to remain in their hotels. But the day before that large, colourful sculptures of ogoh-ogoh monsters are paraded and finally burned in the evening to drive away evil spirits. Other festivals throughout the year are specified by the Balinese pawukon calendrical system.

Many celebrations call for a loud, boisterous atmosphere with lots of activity and the resulting aesthetic, ramé, is distinctively Balinese. Oftentimes two or more gamelan ensembles will be performing well within earshot, and sometimes compete with each other in order to be heard. Likewise, the audience members talk amongst themselves, get up and walk around, or even cheer on the performance, which adds to the many layers of activity and the liveliness typical of ramé.
Kaja and kelod are the Balinese equivalents of North and South, which refer to ones orientation between the island’s largest mountain Gunung Agung (kaja), and the sea (kelod). In addition to spatial orientation, kaja and kelod have the connotation of good and evil; gods and ancestors are believed to live on the mountain whereas demons live in the sea. Buildings such as temples and residential homes are spatially oriented by having the most sacred spaces closest to the mountain and the unclean places nearest to the sea.
Most temples have an inner courtyard and an outer courtyard which are arranged with the inner courtyard furthest kaja. These spaces serve as performance venues since most Balinese rituals are accompanied by any combination of music, dance and drama. The performances that take place in the inner courtyard are classified as wali, the most sacred rituals which are offerings exclusively for the gods, while the outer courtyard is where bebali ceremonies are held, which are intended for gods and people. Lastly, performances meant solely for the entertainment of humans take place outside the walls of the temple and are called bali-balihan. This three-tiered system of classification was standardized in 1971 by a committee of Balinese officials and artists in order to better protect the sanctity of the oldest and most sacred Balinese rituals from being performed for a paying audience.
Tourism, Bali’s chief industry, has provided the island with a foreign audience that is eager to pay for entertainment, thus creating new performance opportunities and more demand for performers. The impact of tourism is controversial since before it became integrated into the economy, the Balinese performing arts did not exist as a capitalist venture, and were not performed for entertainment outside of their respective ritual context. Since the 1930s sacred rituals such as the barong dance have been performed both in their original contexts, as well as exclusively for paying tourists. This has led to new versions of many of these performances which have developed according to the preferences of foreign audiences; some villages have a barong mask specifically for non-ritual performances as well as an older mask which is only used for sacred performances.
Balinese society continues to revolve around each family's ancestral village, to which the cycle of life and religion is closely tied. Coercive aspects of traditional society, such as customary law sanctions imposed by traditional authorities such as village councils (including "kasepekang", or shunning) have risen in importance as a consequence of the democratization and decentralization of Indonesia since 1998.