The purpose of the research is to examine monetary and temporal costs of air transportation for inbound tourism demand of Australia. We use System-GMM to examine the inbound tourism demand model. Our dataset comprises 42 O-D pairs from 13 Asian markets to 6 Australian states (2014Q1-2019Q4). This study is the first to account for both monetary and temporal costs of air transportation in tourism demand modeling. There is no prior tourism demand study which incorporates temporal cost of (air) transportation. Omission of variables for temporal cost may lead to omitted variable bias.