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Balis tourism development policy is cultural tourism. This policy has been able to become the leading sector of the peoples economy and revitalize local culture. But at the same time, the implementation of cultural tourism turned out to have an impact on profanization and cultural degradation. One of them, occurs in the sculpture industry of Bali. This paper aims to understand the implications of cultural tourism policy on the development of sculpture in Bali. The study focused on the influence of tourism capitalism on the classification and mode of production of Balinese sculpture. This study uses a qualitative method with a cultural study approach, using two critical theories, namely the power and knowledge theory by Foucault, and the modality theory from Bourdieu. The results of this study illustrate that the development of Balis tourism has led to a new phenomenon in the sculpture craft industry. In terms of the classification of production there is a transformation of the status of the producer from a traditional sculptor, turning to commercial craftsmen by making mass sculptures. They are concentrated into three producer groups, namely artists (artistic), craft wolker with mass products, and crafters of certain model orders (limited adition producers). The Balinese sculpture industry is organized into two modes of production, namely local cultural ideology, and mass product with capital ideology. The dynamics of the sculpture industry in Bali shows a cultural hybrid, which produces mass sculpture while still relying on local culture (crafter made mass products with local culture basic).