This study addresses the structural limitations of tourism development in the Tanimbar Islands Regency, where a rich and distinctive cultural identity has not yet functioned as a transformative economic driver within regional development policy. Although the regency possesses significant cultural assets, these resources remain largely positioned as symbolic attractions rather than embedded within a comprehensive socio-economic transformation framework. The research aims to reframe cultural identity-based tourism as a paradigm shift from promotional representation toward structural socio-economic transformation at the regional level. It argues that cultural identity should be repositioned as strategic capital capable of shaping fiscal resilience, strengthening institutional governance, and fostering community empowerment instead of serving merely as a marketing instrument. The study applies Cultural Capital Theory, Community-Based Tourism, Sustainable Tourism Development, and Destination Branding within a transformative analytical framework to examine how identity can be converted into inclusive economic value. A qualitative-descriptive methodology is employed through literature review, fiscal structure analysis, policy examination, and contextual socio-cultural assessment of development dynamics in Tanimbar. The findings indicate that rituals, woven textiles, marine traditions, and diaspora heritage possess convertible economic potential when integrated into participatory governance mechanisms and coherent institutional design, particularly when supported by long-term policy alignment and cross-sectoral coordination. The study concludes that reframing identity-based tourism requires structural reorientation in planning systems, fiscal strategies, and governance architecture to ensure sustainable socio-economic transformation in archipelagic regions while safeguarding long-term cultural integrity and strengthening regional development resilience.