I found this bag at a little surf shop in Old Town Koloa, which is just up the road from Poipu Beach (Poipu is located in the town of Koloa). It was handmade by a woman who lives in Koloa, but she leaves no tags on her products.
It’s a simple canvas bag and the mermaid/sea life appliques are felt and look to be attached with fused webbing. The bottom appliques are also stitched. She used simple plastic buttons/embellshments for the lei on the mermaid.
The handle also has a little embellishment of hand-stitched yarn. I don’t know the name of the stitch, but I know how to do it (which means I may try to make one fo these at home with the loaner sewing machine).