<p>The tourism sector plays a significant role in regional economic development, particularly in heritage cities such as Madurai. However, the extent to which tourism factors contribute to economic and socio-cultural outcomes at the city level remains insufficiently explored. This study examines the impact of key tourism determinants such as tourist arrivals, foreign exchange earnings, infrastructure development, government policies, and community participation on employment generation, income growth, and socio-cultural development in Madurai. Additionally, the study investigates the mediating roles of employment, income, and socio-cultural factors in shaping the overall economic impact of tourism. Unlike previous studies that focus mainly on macro-level impacts, this study offers a novel micro-level analysis by integrating multiple tourism determinants and mediating factors within a single structural framework specific to Madurai. A quantitative research design is adopted using Structural Equation Modelling (SEM) based on 234 valid responses collected from tourism stakeholders in Madurai, supported time-series data from 2015 to 2025. The results indicate that employment generation (β = 0.72) is the strongest predictor of economic impact, followed by income growth (β = 0.61) and socio-cultural development (β = 0.55). Tourist arrivals significantly influence employment, while foreign exchange earnings and government policies enhance income growth. The structural model demonstrates strong explanatory power (R² = 0.70), indicating that the proposed framework effectively captures tourism-driven economic outcomes. The findings provide practical insights for policymakers to promote sustainable and inclusive tourism development.</p>