Arak is the name given to the alcoholic fermented beverage in Bali. With a total of 422 unique product varieties registered annually, Bali Province is the primary producer of Arak in Indonesia, as mentioned by the FDA. The main producer of Arak in Indonesia is Bali Province, which consistently registers a total of 422 distinct product varieties each year. Balinese arak, as a traditional local commodity, is ingested to provide body warmth prior to physical exertion and possesses a delicate flavor. It is frequently offered during religious rituals. The legality of this beverage, despite its alcohol content, is established by Bali Governor Regulation Number 1 of 2020, which pertains to the management of Balinese fermented and/or distilled drinks. The aim of this study is to analyze the challenges in enhancing the brand and legality of Balinese Arak as a representation of traditional and indigenous Balinese knowledge in the fields of tourism and hospitality. Objects of this qualitative study were the villages of North and East Duda in Karangasem Regency in Bali Province. The data was gathered by conducting comprehensive interviews with 18 stakeholders, including Arak artisans, the Head of the Duda Villages, the director of the distributor company, and managers of Village-Owned Enterprises (BUMDES). They are responsible for producing, packaging, and distributing the products as local brand stuff. The research findings indicate that government stakeholders, business organizations, MSMEs, and social and religious communities collectively contribute significantly to enhancing the brand and legality of Balinese Arak as a local wisdom product that benefits the tourism and hospitality industries. The implications of this research offer stakeholders and MSMEs guidance on how to innovate and ensure the legality of Balinese local wisdom products.