TO INFINITY AND BEYOND

-By: Aarushi Rai, Gahana PN, Supriya Bellur

(Senior Columnists)

You may have heard about Jeff Bezos, Richard Branson and Elon Musk’s space ventures. It seems as though everyone wants to go to space now, with billionaires first in line. Space tourism seems like the next big thing!

Now, one might wonder what the space tourism industry is all about. Space tourism is a niche section of the aviation industry that presents tourists with the opportunity of becoming astronauts and experiencing space travel for business purposes, leisure and recreation. The market includes orbital, sub-orbital and parabolic flights. Contrary to the concept of space tourism being a ‘whim of the rich’ (with Jeff Bezos’s space trip costing approximately $2.54 million per minute), experts predict that, within a decade, space tourism could transform into a mainstream tourism industry.

We have around 10 different stakeholders watching and tracking the development of this industry carefully with precision. Let us take a look at some of these stakeholders now. First off we have regulatory agencies, National Space Agencies and Governments and Space Insurance Companies On the other side, there are end-customers who are private companies and rich individuals interested in space exploration. Along with this class, private investors (equity groups and business angels), private space exploration providers, manufacturers and launch services providers are playing a role in streamlining this development.

Increased technological advancements accompanied with massive private investment and growing public-sector interest is expected to reduce cost and hence, make the industry accessible beyond the reach of just “the 1%”. Elon Musk’s SpaceX has involved itself in testing reusable rocket technology with the aim of making space travel more affordable and accessible for us ordinary people. Firms like Blue Origin and Virgin Galactic too, are putting their capital in suborbital space tourism to take humans to the very end of space and back. The space tourism industry is estimated to grow into a $800 billion industry; according to a few reports, the space industry as a whole will reach over $1 trillion by 2040 as compared to $350 billion in 2020.

Currently the industry is dominated by the private sector and financed through private investments. But in order to understand its true potential, investors must realise the ripple effect of their investment in the space tourism industry. Space tourism is one part of the space economy; an investment in space tourism and related industry will have an effect on industries like, telecommunication, satellite broadband, IT, aviation etc. Investment in the global space economy is likely to push these sectors, and hence they have immense growth and profit-earning potential.

Investors and space tourist service providers will have to assess the initial need for diversifying based on the benefits it will bring versus cost drivers. They will need to examine their investment decisions and the expected profitability from their diversification activities. This can be executed by performing CBA (Cost Benefit Analysis). An exemplary analysis will yield quantitative benefits such as cost savings, technological reliability and capacity. By contrast, qualitative pros will include upgradability, potential international partnerships, free publicity (arising from public curiosity) and technological innovation.

Increased public sector investment in the space and space tourism industry will further encourage private investment because investors will be assured that the industry has a reliable profitable future. Public-sector and governments have largely focused on space-related investments in national interest, but with technological advancements and possibilities, there is increased public-sector interest in the commercial aspects of the space industry. For example, the U.S has incorporated a space command wing for R&D in the space tourism sector. Similarly, the Russian and Chinese governments are also vying for good investment opportunities in this sector.

Space tourism becoming a reality has opened the doors for a plethora of business opportunities and ideas. Sub-orbital flights, space hotels, spaceports etc. are other ideas that can finally be materialised after the success of space tourism. These industries together, are predicted to create extensive job opportunities in the coming years. It is predicted that space travel could create 10-20 times the number of jobs in aircraft and rocket manufacturing, these could include jobs of maintenance, review, operations control etc. Some notable professionals that are coming up as a result of space tourism are: Space tourism experts, space food and medicine researchers, space traffic managers etc. Increased demand due to reduced prices, R&D, creation of employment and investment in the space tourism industry is expected to create billions of dollars of revenue each year and thus, accelerate economic growth. Space tourism activities can also create secondary markets for space fashion, gaming and sports.

Space travel is all fun and games until we notice the devastating effects it has on the environment. It contributes heavily towards global warming. Jeff Bezos might claim that his Blue Origin rockets are greener than Richard Branson’s VSS Unity. But, can we take this statement at its face value? Or do we bear the responsibility of investigating further? Let us paint you a picture so you can comprehend the gravity of the situation. Carbon Dioxide emissions for around 4 tourists on a space flight will be 50- 100 times more than the 1- 3 tonnes per passenger on long-haul flights. Experts have suggested that nitrogen oxides and chemicals produced due to the breakdown of water vapour emitted depletes the ozone layer by converting ozone into oxygen and all of us are aware of the pivotal role this layer holds. A growing space tourism industry means that there will be more travels exacerbating the ramifications.

There have been other social concerns regarding space travel too. Lawmakers have proposed taxing space trips, just like air travel. They justify this proposal stating that space exploration cannot be regarded as a tax-free holiday. Billionaires are the ones who can afford space tourism, and they must pay taxes for it, just like how the common man is taxed for conventional flights.

When we objectively look at space tourism, it does indeed look like it has quite a bright future. Ever since our primitive ancestors first gazed at the starry night sky, human beings have dreamt about what it might be like to move freely among the stars. Now, this dream is likely to have come true. Space tourism is said to be a growing market which is expected to be worth billions by the year 2030. But of course the evolution of space tourism will depend on the technological feasibility. We are in for an incredible, breathtaking journey ahead.