Our study aims to contribute empirical evidence on the capacity of aviation policy to stimulate greater tourism in peripheral destinations. Specifically, we examine the extent to which enhanced air service availability to a peripheral destination will translate into greater number of tourists. By using choice experiments, the research design addresses the generative effect of new air services on tourism demand, as well as the broader tourism context in which the air itinerary choices are made. In the context of Koreans travelling to Australia, the market share effects of the changes in the factors both external and internal to aviation policy are simulated. Although the results suggest that changes in the flight itinerary attributes can generate additional tourists for peripheral destinations, the extent to which the aviation attributes can generate tourism is strongly dependent on the tourists' length of stay in Australia. The key implication is that institutional changes such as the length of leave entitlements or visa arrangements for foreign travellers are important contextual factors that can significantly enhance or depress the effect of the destination’s aviation policy and air service attributes designed for tourism development.