In the 1930s, anthropologists Margaret Mead and Gregory Bateson, and artists Miguel Covarrubias and Walter Spies, and musicologist Colin McPhee created a western image of Bali as the most culturally exotic place, and how western tourism started to grow on the island and the image of paradise lost which represents the ideal type of Western Idealism had been internationalized since then. At present time, the advancement of air mass transportation, easier immigration process and the needs of the Indonesian state to have economic benefit from tourism have place Bali as a perfect example of how international tourism and capitalism blend in what I may call as globalization. The experience of becoming modern for Balinese people through close encounters with tourism is striking in comparison to other Indonesian ethnic-groups. However, Balinese people are also known for their persistence in maintaining their traditional customs, symbolical system as if it had not touched by modernization. Family rituals, village rituals, offerings and prayers are example of daily activities which still exist in modern Bali today. Does it mean that they have developed cultural strategy to make a distinction between sacred and secular-profane meaning in as a way of living? This paper would like to discuss the psychological tension within Balinese society in responding to modernization in the context of global tourism today, which is seen through how they use, manage and give meaning of their present social and public spaces. The data was collected particularly in Trunyan, a remote village which is believed to be the first Balinese people arrived in the island.