Originally known as a fishing village, it was one of the first towns on Bali to see substantial tourism, and as a beach resort remains one of Indonesia's major tourist destinations.

It is known internationally for its long sandy beach, varied accommodations, restaurants and bars, and many renowned surfers who visit from Australia.

Kuta continued to grow in the 1970s, with hotels, souvenir shops, and restaurants opening in response to increasing tourism.

[3] On 12 October 2002, Kuta was the site of two bombings carried out by Jemaah Islamiyah suicide bombers, a violent Islamist group.

[4] Around 20 seconds later, a more explosive car bomb was detonated in a white Mitsubishi van in the bar Sari Club, opposite Paddy's Pub on Legian Street.

[4] The heavily populated residential and commercial district sustained substantial damage, with a crater one meter (3.3 feet) deep created by the car bomb.

[5] After the Bali bombings in 2002 at Kuta, which killed 202 people including 88 Australians,[6] a permanent memorial was built on the site of the destroyed Paddy's Pub on Legian Street.

The memorial is made of intricately carved stone, set with a large marble plaque, which bears the names and nationalities of each of those killed.

Some tourists dislike it as it is considered to be blocking the beach view, while others believe the wall helps dampen the sounds from the congested traffic on the adjacent street.

[11] The annual monsoon season in the region often results in trash and plastic waste washing up on the shore.