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Contributions to Management Science

The series Contributions to Management Science contains research


publications in all fields of business and management science. These
publications are primarily monographs and multiple author works
containing new research results, and also feature selected conference-
based publications are also considered. The focus of the series lies in
presenting the development of latest theoretical and empirical research
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Kang-Lin Peng, IokTeng Esther Kou and Hong Chen

Space Tourism Value Chain


When East Meets West
Kang-Lin Peng
Faculty of International Tourism and Management, City University of
Macau, Macau, China

IokTeng Esther Kou


Faculty of International Tourism and Management, City University of
Macau, Macau, China

Hong Chen
Institute for Research on Portuguese-speaking Countries (IROPC), City
University of Macau, Macau, China

ISSN 1431-1941 e-ISSN 2197-716X


Contributions to Management Science
ISBN 978-981-97-1605-0 e-ISBN 978-981-97-1606-7
https://doi.org/10.1007/978-981-97-1606-7

© The Editor(s) (if applicable) and The Author(s), under exclusive


license to Springer Nature Singapore Pte Ltd. 2024

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Preface
Chapter 120 of “Dream of Red Mansions” mentions in the book: “The
great void is truly like a blessed land.” Space travel used to be a myth for
general people. However, we can experience traveling into space
because of the advance of space technology and commercialization.
Humans have been used to Earth travel from one to other destinations
for various business purposes and enjoying various leisure activities at
the destinations. The year of 2021 is the era of space tourism because
three aerospace companies, Virgin Galactic, Blue Origin, and SpaceX,
have completed successful space travels one after the other. In the last
month of 2021, Japanese businessman Yusaku Maezawa even took on
board the Russian Soyuz MS-20 spacecraft and flew to the International
Space Station for space tourism. Virgin Galactic has begun the
commercial operations of space travel every month since June 2023.
Space has become a new destination for human travel. To be able to
travel in space, travelers need to be wealthy and healthy. In the long
run, space should be a destination for more people to be experienced.
Space is a new destination that we have just developed. We need to
devote more resources to foster the progress of space
commercialization, which is one of the purposes of writing this
monograph. Applications in fields such as medicine, materials science,
and environmental science incurred following the development of
space tourism. The space tourism industry is expected to grow
significantly in the coming years, offering numerous opportunities for
technological advancement, economic growth, scientific research, and
collaboration.
This monograph presents the knowledge of space tourism from the
perspective of general science education. The chapters outline the
relevant space tourism stakeholders, from the upstream suppliers,
intermediary institutions to downstream consumers and related
industries of the space economy industry chain. Innovative point of
view of applying space technology is introduced to develop space
tourism for leisure purposes. The main industry chain of space tourism
includes spaceports, spaceships, space travel agencies, space hotels,
and even consumers are detailed in the chapters. Other related
industries, such as space insurance, law, medical care, debris, etc., are
also introduced. Finally, the dual-carbon economic model and
sustainable development of space tourism are discussed. The economic
development of space tourism and environmental protection
summarizes green space tourism. When we do everything possible to
go into space tourism or even immigrate to Mars, Earth still needs to be
sustained by sustainable space tourism, which matters to human long-
term survival and development.
Space has become a tourist destination. We shall have a cognitive
change to understand space tourism, which is not as usual as Earth
tourism. The cognition of existence issue will become an ontological
discussion in the space era, which is one of the purposes for us to travel
space to understand survival and inheritance of human beings in the
universe. Overall, the monograph seeks to provide a comprehensive
understanding of space tourism, its industry dynamics, and its broader
implications for human civilization.
Kang-Lin Peng
Macau, China
2024
Contents
1 An Overview of Space Tourism
1.​1 Background of Space Tourism
1.​2 Challenges of the Space Tourism
1.​2.​1 Costly Ticket
1.​2.​2 Insufficient Legal Safeguards and Uniformity
1.​2.​3 Political Issues
1.​2.​4 Preparation for Departure
1.​2.​5 Safety of Launch
1.​2.​6 Safety of Landing
1.​3 The Genesis of Space Tourism in China
References
2 Space Firms
2.​1 Leading Commercial Aerospace Companies in Western
Countries
2.​1.​1 SpaceX
2.​1.​2 Virgin Galactic
2.​1.​3 Blue Origin
2.​1.​4 Successful Voyages of SpaceX
2.​2 Leading Commercial Aerospace Companies in China and
Related Sector
2.​2.​1 Development of Spacecraft Launch Facilities in China
2.​2.​2 China’s Leading Commercial Aerospace Companies
2.​2.​3 Challenges of Commercial Aerospace Companies in
China
2.​2.​4 Recommendation for the Advancement of Privately-
Owned Aerospace Businesses in China
2.​3 The Emergence of Private Commercializatio​n in China’s
Aerospace Industry
References
3 Space Travelers
3.​1 Popularization of Space Tourism
3.​1.​1 Diversification of Space Tourism
3.​1.​2 Managing Expenses and Providing Reasonably Priced
Options
3.​1.​3 Collaboration Between Corporations and Academic
Institutions
3.​1.​4 Space Travel Cultural Festival
3.​1.​5 Development of Space Tourism in the Greater Bay Area
and the Guangdong-Macao In-Depth Cooperation Zone in
Hengqin
3.​2 Target Passengers
3.​2.​1 Physical Fitness
3.​2.​2 Financial Capacity
3.​2.​3 Potential Target Markets
References
4 Space Travel Agency
4.​1 The Scope and Function of Space Travel Agencies
4.​1.​1 Professional Spacesuits Business
4.​1.​2 Training Service
4.​1.​3 Catering Business
4.​1.​4 Space Hotel
4.​2 Planning Space Travel Itineraries
4.​3 Intermediary Participation
4.​4 Space Tourism Lottery
References
5 Space Hotels
5.​1 The Concept of Space Hotel
5.​2 Design History of Space Hotel
5.​2.​1 Galactic Suite Hotel
5.​2.​2 Inflatable Space Hotel
5.​2.​3 The Voyager Spacecraft
5.​2.​4 The Moon Hotel
5.​3 Function Requirements and Services of Space Hotels
5.​3.​1 Life Support
5.​3.​2 Consumer Demand
5.​3.​3 Hotel Medical Services
References
6 Space Insurance
6.​1 The Emergence Period of Space Insurance
6.​2 Development and Current Status of Outer Space Insurance
6.​2.​1 Development and Current Status Abroad
6.​2.​2 Developmental History and Current Situation of
China’s Aerospace Insurance
6.​3 Current Commercial Space Insurance
6.​4 Risks of Space Tourism
6.​4.​1 Risks Before Launch
6.​4.​2 Risks During Space Travel
6.​4.​3 Risks During and After Return
6.​5 The Coverage Scope of Space Insurance
References
7 Legislation of Space Tourism
7.​1 International Law on Space Tourism
7.​1.​1 Outer Space Treaty
7.​1.​2 Rescue Agreement
7.​1.​3 Liability Convention
7.​1.​4 Registration Convention
7.​2 Space Tourism Legislation of Related Countries
7.​2.​1 Chinese Space Law
7.​2.​2 US Space Law
7.​2.​3 EU Space Law
7.​2.​4 Russian Space Law
7.​2.​5 UK Space Law
7.​2.​6 French Space Law
7.​3 Legal Issues in International Space Tourism
7.​3.​1 Unclear Legal Status of Space Tourists
7.​3.​2 Lack of Targeted Legislation
7.​3.​3 Single Liability Subject
7.​4 Recommendations for Private Enterprises Regarding
International Space Tourism Legislation
7.​4.​1 Strengthening International Coordination and
Establishing Unified Rules
7.​4.​2 Legal Issues of Space Tourists Under the Outer Space
Treaty
7.​4.​3 Implementing the Rescue Agreement for Space
Tourists
7.​4.​4 Adjusting National Responsibilities​and Promoting
Fair Competition with Private Enterprises in Outer Space
7.​4.​5 China’s Space Tourism Legislation
References
8 Space Medicine
8.​1 Health Requirements in Space Tourism
8.​2 Concept of Space Medicine
8.​3 Effects of Space Environment on the Human Body
8.​3.​1 Space Radiation
8.​3.​2 Effect of Weightlessness
8.​3.​3 Long-Term Effects
8.​4 Space Medical Applications
8.​5 Exploration of New Approaches in Space Pharmaceutics
8.​6 Existing Problems and Future Development of Space
Medicine
References
9 Space Debris
9.​1 Space Debris Removal Technology
9.​1.​1 China Space Debris Removal Technology
9.​1.​2 The U.​K.​Space Debris Removal Technology
9.​1.​3 European Space Debris Removal Technology
9.​1.​4 The USA Space Debris Removal Technology
9.​1.​5 Japan Space Debris Removal Technology
9.​2 Waste Disposal of Living Garbage
9.​3 Space Debris Business Opportunities
9.​4 Commercial Operation of Space Debris Removal
9.​4.​1 Space Debris Removal Model
9.​4.​2 Using Insurance to Pay for the Space Debris Removal
9.​4.​3 Risks of Space Debris Removal
9.​5 The Future of Space Debris Removal Market
References
10 Space Economics
10.​1 Commercializatio​n of Space Tourism
10.​2 Economic Contribution of Space Tourism
10.​2.​1 Macroeconomics Contribution
10.​2.​2 Expanding of the Space Industrial Economics
10.​2.​3 Microeconomic Pricing Model of Space Tourism
References
11 Space Tourism Management and Service Design
11.​1 Space Tourism Industrial Analysis
11.​1.​1 Threat of New Entrants
11.​1.​2 Bargaining Power of Suppliers
11.​1.​3 Bargaining Power of Buyers
11.​1.​4 Threat of Substitute
11.​1.​5 Industry Rivalry
11.​2 Space Tourism Service Design
11.​3 Service Design and Quality Engineering
11.​3.​1 Exploring Service Needs and Opportunities
11.​3.​2 Service Product Design
11.​3.​3 Service Process Design
11.​3.​4 Service Resouce Design
11.​4 Feasibility Analysis
References
12 Sustainable Space Tourism
12.​1 Economic Development and Environmental Conservation
12.​1.​1 Carbon Neutrality Technology
12.​1.​2 Sustainable Development Policy and Rules
12.​1.​3 Sustainable Space Tourism
12.​2 Space Tourism Carbon Neutrality Technology
12.​2.​1 Carbon Neutrality Approaches
12.​2.​2 The Carbon Neutrality Goal in 2060
12.​2.​3 The Future of Space Tourism
References
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_1

1. An Overview of Space Tourism


Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

The expansion of travel boundaries has been a significant aspect of


human history (Cohen 2017). In recent times, the tourism industry has
extended its reach to outer space (Bushnell 2021). This has been made
possible by advancements in manned spaceflight technology and the
commercialization of space (Teske and Adjekum 2021). As a result,
individuals can now venture beyond the Ká rmá n line and fulfill their
desire for space exploration through space tourism (Mehran et al.
2023). This form of tourism offers a unique opportunity for individuals
to explore the origins and limitations of human beings (Mesa-Arango et
al. 2023). This chapter provides an overview of the current state of
global space tourism development, including its characteristics,
categories, and existing challenges. The successful implementation of
space tourism projects by private enterprises in Europe and the United
States offers valuable insights for China’s space tourism endeavors
(Ehrenfreund et al. 2010). Given China’s leading position in global space
technology, space tourism represents a promising commercial
development field that can benefit both the country and its citizens
(Kashevarova and Panova 2023). Following the completion of the long-
term in-orbit space mission of China’s Shenzhou-13 in 2022, the
construction of additional space stations using the follow-up Shenzhou
series has advanced China’s manned spaceflight and space science and
technology (Kashevarova and Panova 2023). The latest iteration of
manned spacecraft has undergone significant enhancements in terms of
its comprehensive capabilities (Uyanna and Najafi 2020). Commercial
branches of the Chinese Academy of Sciences (CAS) have designed
spaceships that can accommodate up to seven astronauts (Wu et al.
2021). The extended cabin of the Chinese-built space station offers
improved conditions for astronauts’ work and life, as well as further
support for scientific experiments in orbit (Shan et al. 2023). However,
this book primarily concerns the private and commercial development
of national space science and technology. Following several successful
flights in Western countries in 2021, space tourism is expected to boom
(Peng et al. 2022).

1.1 Background of Space Tourism


On April 30, 2001, space tourism was introduced when an American
entrepreneur, Dennis Tito, embarked on a journey to the International
Space Station via the Russian “Soyuz” TM32 spacecraft, departing from
the Baikonur Cosmodrome in Kazakhstan (Tcharfas 2015). Tito’s
excursion lasted for a duration of eight days, during which he engaged
in sightseeing activities (Cater 2019). This marked the inaugural
instance of non-professional astronauts embarking on a space tour
(Johnson 2020). To date, the count of individuals who have participated
in space tourism initiatives is limited to slightly over ten (Toivonen
2022b). The disparity in the number of space tourism ventures, in
comparison to the conventional terrestrial tourism, has been limited to
the elevated technological and financial prerequisites, as well as the
affluence and physical requirements of Space tourists Naturally, the
development of a gratifying space tourism project necessitates
meticulous preparation of the launch vehicle, which is how humans can
traverse the vast expanse of the universe (Toivonen 2022a). The launch
vehicle is responsible for transporting various space equipment, such
as interstellar probes, space stations, and satellites, into space orbit
(Van Allen 1986). Additionally, manned spacecraft can fulfill the desire
of individuals to experience interstellar travel in space orbit (Rуzhenko
and Halahan 2020). China’s space science and technology are at the
forefront globally, with the Shenzhou series manned spacecraft and
space station construction contributing to its continued advancement
(Lei et al. 2023). However, private commercial launch vehicles and
manned projects are still nascent (Bitzinger 2021). Recently, private
space companies in China, including Lingke Space, Blue Arrow Space,
Star Glory, and Zero One Club, have emerged. The Chinese commercial
space industry has initiated a series of exploratory ventures, with their
substantive operations still in their nascent stages (Barwinski et al.
2020). The Beijing Institute of Future Aerospace Technology’s “2020
China Commercial Aerospace Industry Investment Report” revealed
that there were 313 registered commercial aerospace enterprises in
China at the end of 2020, with nearly 50% of these established between
2017 and 2020 (Aerospace 2020). In recent years, China’s commercial
aerospace industry has experienced robust investment momentum,
with the investment peak occurring in 2018 when accumulated
financing exceeded 5 billion yuan for the first time (Zhang and Corrie
2018). Despite being impacted by the capital winter and the COVID-19
epidemic from 2019 to 2020, the domestic commercial aerospace
industry has been revitalized (Rimmer 2020). In 2020, a significant
number of domestic investment institutions, approximately 400,
participated in the investment of the commercial aerospace industry
(Denis et al. 2020). Among these institutions, more than 80 capital
institutions invested in commercial aerospace enterprises (Teece
2022). During the same year, China’s space industry accomplished 19
commercial launches, accounting for 49% of the total domestic annual
launches (Harrison et al. 2020). Out of these launches, 16 were
successfully put into orbit, resulting in an 84% success rate (Feng et al.
2019). Furthermore, the number of commercial rocket launches was 8,
accounting for 42% of the total commercial launches. The year 2020
marked a significant milestone for China’s space industry, as it achieved
breakthrough accomplishments in the commercial launch vehicle
project (Pollpeter 2020). In 2021, China’s space launches reached 55,
which is the highest in the world (Miraux et al. 2022). The foundation
of national space science and technology has instilled great confidence
in the development of the domestic commercial space industry.
At present, the commercial global space industry is categorized into
five distinct areas, including space stations, deep space exploration,
manned space flight, artificial satellites, and launch vehicles (Kulu
2021). However, the technological advancement and industry scale of
space stations, deep space exploration, and manned space flight are still
in their nascent stages, with relatively basic overall technical
development (Szocik and Wó jtowicz 2019). Conversely, the research
and development of artificial satellites and launch vehicles have
emerged as the primary focus for the commercial space industry’s
growth and development (Denis et al. 2020). The development of space
tourism holds significant implications not only for advancing aerospace
technology commercialization, but also for promoting the development
of related industries such as space medicine, space mining, space
agriculture, space insurance, space manufacturing, satellite application,
and space transportation (Zhang and Wang 2022). Furthermore, the
revenue generated from space tourism projects and other commercial
space ventures can be invested in researching and developing related
technologies within the commercial space industry (Davidian 2020). By
establishing a value chain and economies of scale, the cost of space
tourism can be reduced, thereby expanding its accessibility beyond the
realm of extravagant consumption for the affluent, and enabling more
individuals to explore the vast universe, broaden their perspectives,
and foster creativity and innovation for the betterment of society
(Metzger 2016). Ultimately, the development of space tourism has the
potential to enhance the quality of space-related industries, and their
economic contributions could yield a positive and far-reaching impact
on future social development (Alewine 2020).
Space tourism is a form of experience tourism that is highly coveted
by individuals worldwide (Salem 2020). It involves using advanced
technology to transport passengers on a brief excursion to space or
space-related destinations (Cater, 2010). This firsthand experience
allows visitors to gain a tangible and individualized comprehension of
space-related phenomena, resulting in corresponding cognitive
experiences (Ioannidis et al.). In contrast to terrestrial experience
tourism, space tourism offers a distinct perspective on life and
enlightenment (Roe 2023).
In contrast to conventional forms of tourism, space tourism exhibits
four distinctive features. Firstly, it offers more precise and palpable
service content, which is tailored and differentiated to provide an
experiential tourism experience (Salem 2020). Space tourism
encompasses fundamental amenities such as space travel, food, and
lodging, while also emphasizing visitors’ encounters with space,
thereby enabling them to undergo a diverse range of emotional and
cognitive transformations that arise from venturing beyond the earth’s
atmosphere (Munaro et al. 2020). Secondly, space tourism prioritizes
the consumption process over the consumption outcome (Toivonen
2017). The concept of space tourism not only involves ensuring the
safety of tourists during takeoff and landing but also emphasizes the
overall experience of their consumption, including the unique
sensations of super-gravity during launch and weightlessness in space
(Schneider and Vogt 2012). Furthermore, there are notable distinctions
in the cost-effectiveness and performance of experiential tourism
products, such as space tourism, compared to surface tourism (Mane
2023). It is imperative to offer customized service content that caters to
the individual characteristics of tourists. For instance, a Japanese
businessman named Yusaku Maezawa paid twice the standard fare for
space travel, bringing along his secretary and broadcasting his space
journey life, which garnered a significant following and created a
pioneering and innovative image for both himself and his enterprise
(Danov 2020). Additionally, SpaceX provided a tailored trip around the
moon, albeit at a high cost (Chang 2020).
The marketing models utilized in traditional tourism differ from
those employed in experience tourism, particularly in the case of space
tourism (Crouch 2001). Traditional tourism typically employs service,
commodity, and productive economies, while space tourism utilizes a
production orientation (Chang 2017). This mode is dominated by
suppliers with high demand due to their limited supply. The marketing
process for space tourism involves close interaction between existing
products and the specific needs of consumers (Crouch et al. 2009). The
high price of space tourism products serves as a screening threshold for
the target market, and the unique experiential consumer products are
conveyed to tourists to facilitate consumption decisions (Sesliokuyucu
et al. 2023). Unlike tourism products on earth, space tourism products
have limited channels and do not require a multitude of intermediaries
(Ceuterick and Johnson 2019).
The concept of space tourism encompasses four primary categories,
namely orbital flight, suborbital flight, high-altitude flight close to
space, and parabolic flight of aircraft (Crouch et al. 2009). Each type of
flight has a distinct range of flying altitudes above the earth’s surface.
When an aircraft attains the first cosmic velocity,1 which is equivalent
to 7.8 km/s, it can maintain a constant speed while orbiting the earth.
This speed is also referred to as the orbit (Maini and Agrawal 2011).
Upon reaching the second cosmic speed of 11.2 km/s, the aircraft can
overcome gravity and travel to other planets in the solar system
(Macdonald and Stevens 2018). Orbital flight, which falls between the
first and second cosmic speeds, is a crucial aspect of space flight, along
with interplanetary and lunar flights (McCurdy 2011). Cosmic velocity
denotes the four representative initial velocities at which an object
departs from the earth and breaks free from the celestial gravity field
(Kropff et al. 2015). Due to the dense atmosphere on the earth’s
surface, a spacecraft cannot move in a circle close to the earth’s surface
because of air resistance (Vallado and Finkleman 2014). It must fly at
an altitude of approximately 150 km before it can move in a circle, and
the circling speed at this altitude is 7.8 km/s (Kessler et al. 1980).
Throughout human history, the majority of aerospace endeavors
have been focused on orbital flight (Solomone 2013). During orbital
flight, the primary force acting upon spacecraft is the gravitational pull
of the Earth (Klinger and Mayer-Gü rr 2016). The trajectory of the
spacecraft follows an elliptical path, with the Earth situated at one of
the focal points of the orbit (Nani & Nani, 2020). Short-term space
tourism has been made possible through Earth orbit, including space
shuttle and space station visits (Hobe 2007). For instance, on
September 16th, 2021, the Space X “Dragon” spacecraft, launched by
the Falcon 9 rocket, embarked on a space journey with the “Civilian
Corps” from Launch Pad 39A of Kennedy Space Center in Florida (Kulu
2021). Four passengers traveled around the Earth for three days in an
area of space 575 km above the ground, with a flight orbit 160 km
higher than that of the International Space Station (Pardini and
Anselmo 2023).
In the context of flight, the term “suborbital” pertains to the region
situated between 20 and 100 km above the Earth’s surface (van Fenema
2005). This particular altitude range occupies a position between the
lowest orbit of a satellite and the highest attainable altitude of an
aircraft, commonly referred to as the space transition zone or adjacent
space zone (McDowell 2018b). The suborbital region encompasses
various atmospheric zones, including the ionosphere, mesosphere, and
stratosphere (McDowell 2018b). Notably, the altitude of suborbital
flight closely approximates the “Ká rmá n line,” which is approximately
100 km above the Earth’s surface (Sziroczak and Smith 2016).
According to the United States, individuals who travel beyond 80 km
above the Earth’s surface are classified as “astronauts” (Beck 2009).
Suborbital flight pertains to aviation activities conducted within the
suborbital airspace, ranging from 80 to 100 km above the Earth’s
surface (Dempsey and Manoli 2017). Parabolic flight is typically
utilized to achieve this altitude, and the duration of suborbital flight is
significantly shorter than that of orbital flight (Jonsson 2015). At this
stage, only two commercial space companies, Virgin Galactic and Blue
Origin, have successfully implemented suborbital space tourism
projects, with their aircraft reaching altitudes of 86 and 100 km,
respectively (Yazici and Tİwarİ 2021). During these space travel
experiences, passengers are afforded approximately four minutes of
weightlessness in space and are able to observe the Earth’s stunning
vistas (Weibel 2020) (Fig. 1.1).
Fig. 1.1 Suborbital trajectory of blue origin
The act of engaging in high-altitude flight and parabolic flight of
aircraft is often considered a form of simulated space tourism, albeit at
a low altitude, as it does not involve entering sub-orbit (Anderson and
Piven 2005). High-altitude flight, which utilizes spacecraft, enables
passengers to reach a height of approximately 18 km from the ground,
providing them with a close-up view of the boundless space overhead
and the curvature of the earth’s terrain (World View 2023). This
experience also includes a brief period of weightlessness. The Russian
MiG-25 and MiG-31 high-performance fighters are currently being
developed to facilitate this type of spacecraft, with a flying distance of
over 24 km and an expected ticket price of nearly 10,000 US dollars
(Anderson and Piven 2005). On the other hand, the parabolic flight of
aircraft involves using high-performance weightless aircraft to create a
repeated weightlessness environment, allowing passengers to
experience weightlessness for approximately half a minute (Barratt
2016). The “IL-76” and other aircraft used for Russian astronaut
training are currently being utilized for this type of space tourism,
costing approximately US$5,800 (Reifert 2006). The advancement of
human exploration into the vast expanse of the universe has led to an
increase in space tourism, which has the potential to surpass the speed
of the second universe (Clément 2011). This includes deep space
tourism to destinations such as the lunar orbit, the moon, and Mars,
which has generated great anticipation among humans (Huntress et al.
2006). Notably, successful cases of space tourism have been observed in
companies such as Space X, Virgin Galactic, and Blue Origin, with
Boeing’s unmanned flight test also achieving success (Gudmundsson
2018). These developments have sparked interest in the commercial
development of the aerospace industry on a global scale. The year 2021
has been dubbed the first year of space tourism, with three private
enterprises in the western world achieving successful space tourism
projects (Lee et al. 2021). This has encouraged more leading space
industry companies to invest in space tourism development and gain
valuable experience. The commercialization of space tourism is
expected to accelerate the growth of the orbital and suborbital space
tourism market, as well as the research and development of related
technologies for circular round-trip transportation systems (Turek).
Ultimately, reducing the cost of space tourism will pave the way for
future space flights with longer distances from the ground (De Alwis et
al. 2021).

1.2 Challenges of the Space Tourism


Since 2021, the topic of space tourism has gained significant attention
due to the successful voyages of companies such as Virgin Galactic, Blue
Origin, and SpaceX (Florom-Smith et al. 2022). This has led to several
countries, including China, investing resources in developing their
space industry to showcase national strength and create economic
value (Ferreira et al. 2023). However, China’s space tourism industry is
still in its nascent stage and faces several pressing issues such as high
costs, expensive ticket prices, insurance, legal, and national security
concerns (T. Wang et al. 2021). This section aims to analyze four key
issues of utmost concern to tourists in space tourism projects, namely
fare, legal issues, airspace, training, and safety (Reddy et al. 2012). By
examining these issues, a clearer understanding of the future direction
of this project can be obtained.
1.2.1 Costly Ticket
In 2001, the advent of civilian space tourism was marked by the
successful space tour of American businessman Dennis Tito, who
utilized the Russian Soyuz spacecraft for an eight-day journey at a cost
of 20 million dollars (Seedhouse 2014). Despite this initial
breakthrough, the subsequent decade saw only eight expensive voyages
in the field of space tourism until the year 2021, when new projects
emerged (Polkowska 2021). George Whiteside, the chief space officer of
Virgin Galactic, has characterized space tourism as an “outdoor luxury
experience,” and has identified it as the fastest-growing luxury market
(Seedhouse and Seedhouse 2014). On July 11th, 2021, Richard Branson,
the founder of the Virgin Group in the United Kingdom, completed a
voyage to the Earth’s atmosphere aboard the Unity spacecraft as part of
his company’s space tourism project set to launch in 2023 (Cavallaro
2023). Branson safely returned to the launch site after an hour-long
journey, marking the commencement of a new era in space travel.
Virgin Galactic had previously sold approximately 600 spacecraft
tickets between 2005 and 2014, priced at around $250,000 (Kanas
2023). As of November 10, 2021, the company had sold an additional
100 tickets at a higher fare of $450,000 (Wernick et al. 2023).

1.2.2 Insufficient Legal Safeguards and Uniformity


The commercial aerospace industry in the United States has
experienced the most rapid development on a global scale (Vértesy
2015). While the U.S. government has established detailed certification
procedures for commercial spacecraft utilized by NASA astronauts,
there are currently no legal regulations in place to ensure the safety of
space tourism for civilians (Blue et al. 2017). Furthermore, the
spacecraft utilized for space tourism is not required to adhere to the
same standards as those employed by NASA (Gast 2010). The current
laws and regulations in the United States pertaining to commercial
spacecraft participation are insufficient, and operating guidelines for
private suborbital or in-orbit aircraft have yet to be established (Ritter
et al. 2020). The responsibility of launch suppliers to inform passengers
of risk coefficients and flight safety records must be addressed, and
more significant support for space tourism consumption is necessary
(Vandor and Schirg 2007). Presently, U.S. federal regulations
concerning spacecraft return to Earth prioritize the safety of ground
personnel over that of passengers and crew in commercial spaceflight
(Mekinc and Bončina 2016). The complexity of space tourism issues
and the industry’s unprecedented nature make it challenging to
expeditiously establish the rights, obligations, and responsibilities
between industry supply and demand (Belhadi et al. 2021). The
commercial aerospace industry in the United States has experienced
significant growth on a global scale (Goetz 2017). Although the U.S.
government has established comprehensive certification procedures
for commercial spacecraft used by NASA astronauts, there are currently
no legal regulations to ensure the safety of space tourism for civilians
(Goehlich et al. 2013). Additionally, the spacecraft used for space
tourism is not required to adhere to the same standards as those
employed by NASA (Gabrynowicz 2010). The current laws and
regulations related to commercial spacecraft participation in the United
States are inadequate, and guidelines for private suborbital or in-orbit
aircraft have not yet been established (Brannen 2010). It is necessary
to address the responsibility of launch suppliers to inform passengers
of risk coefficients and flight safety records, and to provide more
significant support for space tourism consumption (Suschenko and
Ekouaghe 2018). Currently, U.S. federal regulations prioritize the safety
of ground personnel over that of passengers and crew in commercial
spaceflight (Bensoussan 2010). Due to the complexity of issues
involved in space tourism and the unprecedented nature of this
industry, it is challenging to promptly establish the rights, obligations,
and responsibilities between industry supply and demand (Danov
2020). The legal systems of China’s space industry are as follows
(Zhang and Yang, 2023):
(1) In 2001, the Commission of Science, Technology and Industry
for National Defense and the Ministry of Foreign Affairs jointly issued
the “Measures for the Registration and Administration of Space
Objects,”(Zhao 2015) which represents China’s inaugural domestic
regulation on civil and commercial aerospace. The introduction of this
regulation was prompted by China’s accession to the “Convention on
Registration of Objects Launched into Outer Space” (Registration
Convention) in December 1988. The code serves two primary
purposes: firstly, to enhance the management of China’s space activities
and establish a space object registration system that safeguards the
legitimate rights and interests of countries launching space objects; and
secondly, to align with the international standard practice of effectively
fulfilling the obligations of a party to the Registration Convention and
internalizing the Convention’s obligations into domestic laws. The
Ministry has outlined the definition of space objects, the department
responsible for space object registration, and the procedures and time
limits for space object registration, thereby formally establishing
China’s space object registration management system for the first time.
(2) In 2002, the Commission of Science, Technology and Industry
for National Defense issued two documents, namely “Interim Measures
for the Administration of Civil Space Launch Project License” and “Civil
Space Launch Project License” (Examination and Approval Procedure).
These documents provide clear and specific guidelines on the
application requirements, examination and approval procedures,
supervision and management, legal responsibilities, and other aspects
of the civil space launch project license. The implementation of these
guidelines ensures that civil space launch activities comply with legal
provisions, establish a legal basis for launch management, and create a
fundamental legal framework and behavior license management
system for space commercial launch activities.
(3) In 2009, the National Defense Science and Technology Bureau
issued the “Interim Measures for the Administration of Space Debris
Mitigation and Protection,” which was revised in 2015. China has
recently shown a greater interest in space debris research and has
achieved significant progress in this area. This progress includes
advancements in basic research, acquiring various application and
management technologies, establishing new research platforms, and
developing a strong decision-making basis for major engineering
projects. Additionally, China has made notable achievements in
international exchanges and team building. These efforts are not only
necessary to protect the space environment and fulfill international
responsibilities and obligations but also to address the impact of space
debris on space activities and ensure their safety. The implementation
and continuous improvement of this system demonstrate the Chinese
government’s commitment to managing space debris mitigation and
protection, as well as its dedication to fulfilling the principles of
international space law and international obligations (Lu 2020).
(4) In 2016, the National Defense Science and Technology Bureau
released the “Interim Measures for the Administration of Civil Satellite
Projects,” which serves as a revised version of the “Interim Measures
for the Development and Management of Civil Satellite Engineering”
that was issued on January 11, 2008. The updated method has been
expanded and enhanced to meet the practical and actual needs of the
field (Lu 2020). It encompasses the management of civil satellite
engineering, including project organization, management,
demonstration, and related activities throughout the implementation
process. The method described in the text is suitable for civil scientific
research satellite projects that utilize central financial funds and have
been approved by relevant state departments. However, the
supplementary provisions specify that commercial satellite projects
and international cooperative satellite projects should be implemented
with reference to the method in principle. Although the interim
measures are not mandatory for the management of commercial
aerospace, they serve as the first legal reference for commercial
aerospace in legal documents. Additionally, administrative regulations
and departmental rules, such as regulations on telecommunications in
space and regulations on the protection of new plant varieties,
indirectly manage matters related to commercial aerospace. Both
domestic and foreign laws and regulations on space tourism and
manned spaceflight require complete legislation to support the
industry’s sound development.

1.2.3 Political Issues


Currently, the concept of “space tourism” is more accurately referred to
as “private space travel”, which necessitates modifying and adapting the
norms governing outer space to accommodate this groundbreaking
development (Martin and Freeland 2022). Such activities are limited to
a select few qualified individuals (Martin and Freeland 2022). Private
space travel is defined as a human flight that satisfies either or both of
the following criteria (Danov 2020): (a) it is self-funded or funded by
another private individual or entity, and (b) it is conducted by a private
entity. These two specific criteria distinguish private space travel from
other conventional space activities, and can be applied in conjunction
with one another. The private nature of this type of space travel, as
defined by these alternative standards, sets it apart from state or
intergovernmental public sector-funded manned space flights, and
presents a host of new challenges related to the planning, operation,
and management of outer space (Freeland 2005). These challenges
must be addressed through the development of a comprehensive legal
and policy framework in the future (Frans 2011).
In April 2012, North Korea attempted to launch a rocket to place a
satellite into orbit, but the mission was unsuccessful (Elleman 2013). In
response, South Korea warned that it would take measures to intercept
the rocket if it entered its airspace (Bowers and Hiim 2020). However,
the precise boundaries of South Korea’s airspace have not been
definitively established, either by the country itself or through any
international accord (Oduntan 2011). While it is acknowledged that
South Korea’s airspace extends vertically above its territorial surface,
the exact altitude at which it terminates remains undetermined
(Harrington 2017). This case highlights the potential concerns that may
arise when a rocket from one country enters the high-level airspace of
another country, leading to a perceived violation of airspace and a
corresponding tough response (Collins and Autino 2010). As space
tourism continues to develop, there is a growing need to establish
effective airspace management strategies (Yang et al. 2017). However,
there is currently a lack of scientific research or technical methods to
determine the appropriate altitude or index for defining the airspace of
different countries, or whether such airspace should be subject to state
management (Strauss 2013). Some experts are hesitant to establish
strict airspace boundaries, as this may impede space development, use,
and exploration (Halstead 2010). Instead, they suggest waiting until the
technology has advanced sufficiently to identify the need for
restrictions and determine where they should be implemented before
defining and managing airspace in space (Leveson 2015).
The absence of a universally recognized explanation of “national
activities” in space exploration implies that private space flight is
currently indistinguishable from conventional national space activities
(Robison 2020). Each country has the liberty to determine when and
how to implement federal jurisdiction for space tourism based on
individual preferences (Kitchin 2020). Despite the fact that member
States of the European Union generally adhere to the norms of EU laws
in various domains, the Lisbon Treaty officially acknowledges the EU’s
abilities in the realm of space activities for the first time and explicitly
forbids any EU-level attempts to synchronize national regulations on
private space activities (Frans 2011). The United Nations Committee on
the Peaceful Uses of Outer Space (COPUOS) has encountered difficulties
in achieving a unanimous decision regarding the delineation of space
boundaries (Froehlich et al. 2020). This is due to the apprehension of
certain nations that a clear definition may impede their freedom of
movement in the context of space tourism (Freeland 2010).
In 1972, Manfred Lachs, an esteemed International Court of Justice
judge, opined that the right of innocent passage should be universally
granted to all countries, without discrimination (Dietrich 2017).
Currently, there is no such right to traverse land or territorial sea
airspace, and instances of such passage occurring without permission
are considered to fall under the purview of the right of innocent
passage through the territorial sea (Harrington 2017). In the context of
the United Nations’ regulations on outer space, it is important to note
that the airspace rights enjoyed by countries do not extend to this
domain (Haanappel 2003). Unlike airspace, outer space is considered a
Common-pool Resource (CPR) that is not the property of any particular
nation (Weeden and Chow 2012). Establishing clear boundaries for the
CPR is a crucial first step toward effectively governing its resources
(Weeden and Chow 2011). The regulation of CPR raises a range of
issues, including the freedom of use and the right of innocent passage,
as well as less obvious concerns such as space traffic management,
which encompasses the management of emission frequencies and the
mitigation of stratospheric pollution, space debris, radiation, ultraviolet
damage, and climate change risks (Alipour and Arefipour 2020). These
issues have implications for the safety of using and traversing the CPR,
and if left unaddressed, could significantly impact the future of space
tourism. (Harrington 2017). The possibility of obtaining a
comprehensive resolution from the jurisdiction without invoking
sovereignty requires further investigation to establish a theoretical
basis for the proposed solution. The United Nations Office for Outer
Space Affairs (UNOOSA) should take the lead in facilitating discussions
on airspace matters, particularly those related to CPR boundaries, at
the international level (Keles 2023). This could result in a preliminary
resolution of airspace issues or the organization of relevant discussions
(Sunil et al. 2015). If necessary, a reasonable assessment of the gaps
caused by demarcation issues should be conducted, and the
constructive role of international organizations should be fully utilized
(Oduntan 2003).

1.2.4 Preparation for Departure


There are two methods of launching rockets into space, namely parallel
and vertical launch (Tekin 2010). During the vertical launch, the crew
and passengers are subjected to forces greater than normal gravity,
commonly referred to as “G” forces, due to rapid lift-off and suborbital
parabolic flight (Seedhouse 2012). The magnitude of these forces can
reach up to 5 times the strength of normal gravity, which may cause
untrained individuals to lose consciousness under a force of 3G
(Schneider et al. 2009). Therefore, professional training is essential for
the crew and passengers of space tourism to ensure their safety (Kluge
et al. 2013). The Federal Aviation Administration (FAA) provides a
professional training program for astronauts, which includes high-
altitude cabin and vertigo demonstrations to simulate the physiological
response of humans in space travel (Seedhouse 2013b). Additionally,
centrifuge training can be utilized to test the tolerance of aerospace
participants to increased gravity environments and for resistance
training (Yang et al. 2007). High-intensity physical training is a crucial
aspect of space tourism, distinguishing it from ground tourism (Isozaki
et al. 1994).
Prior to embarking on a space voyage, individuals partaking in
space tourism must undergo comprehensive training to effectively
manage the physiological effects of weightlessness, as well as acquire
knowledge in medical and psychological domains (Reddy et al. 2012).
In particular, prospective space tourists must complete in-person
medical education courses that equip them with the necessary skills to
conduct self-assessments, recognize indicators of potentially severe
medical conditions, and develop strategies to mitigate associated risks
(Chang 2020).
To complete the relevant training programs with medical
professionals and psychotherapists, space tourists are required to
adhere to a prescribed order and set of items outlined in a training
checklist (Mihalič 2000). This checklist should incorporate a section for
medical professionals and psychotherapists to provide guidance and
conduct a clinical examination to assess passengers’ comprehension of
pertinent medical knowledge and psychological well-being following
the completion of the medical training program (Clément 2011). The
items on the checklist encompass a range of bodily systems, including
but not limited to the head (including the face, neck, scalp, nose, mouth,
throat, ears, hearing, eyes, vision, pupil, and eye movement), lungs,
chest, heart and vascular system, abdomen, internal organs, anus, skin
(including body marks, scars, and tattoos), genitourinary system, upper
and lower limbs, spine, musculoskeletal system, and lymphatic vessels
(Chang 2020). Upon conclusion of the assessment, the medical
practitioner and psychotherapist are required to affix their signatures
on the examination document, indicating the date of examination,
personal contact details, and medical license number (Hodkinson et al.
2017). This is necessary to certify that the passenger has successfully
completed the training (Bogomolov et al. 2007). Space tourism diverges
from conventional surface tourism in terms of expenditure
(Więckowski 2014). Prospective space tourists must possess not only a
solid financial background but also adequate physical and mental
preparation, as well as the ability to manage space-related emergencies
(Griko et al. 2022).

1.2.5 Safety of Launch


On January 28, 1986, the Challenger space shuttle was launched but
unfortunately, the external fuel tank exploded in the 73rd second of the
launch, causing the aircraft to transform into a fireball and plummet to
the ground (Vaughan 1996). To avoid the possibility of the plane
crashing into a densely populated area, Air Force officials on the ground
promptly activated the self-destruction button, resulting in the
complete destruction of the Challenger (Arnould 2011). Similarly, on
February 1, 2003, the Columbia space shuttle disintegrated and crashed
over northern Texas, losing all seven astronauts on board (Koestler-
Grack 2004). The Columbia Accident Investigation Board (CAIB) issued
a landmark report warning that due to the hazards of ascent and re-
entry, the unknown risks of the space environment, and the limited
knowledge of human research and exploration in this field, all manned
space operations must be treated as activities that require careful
research and repeated testing, rather than routine and daily work that
can be operated at will (Paloski et al. 2008). Passengers on space travel
will be transported on a ship equipped with a sophisticated launch
vehicle loaded with a volatile mixture of fuel, thousands of
interdependent components, and extremely sophisticated software
(van Pelt 2005a). They will be taken to a remote and desolate
environment far away from daily life (Spector et al. 2017). Private
manned spaceflight is far more dangerous than human climbing Mount
Everest, and there is still a long way to go (Bensoussan 2010).
In the aerospace industry, the failure of a rocket launch can result in
the loss of human life for passengers (Hall 2003). Such occurrences are
not uncommon, as evidenced by the four mission failures recorded by
China’s aerospace industry in 2020 (Harrison et al. 2020). Specifically,
the Long March 7A rocket failed during its inaugural flight on March
17th, while the Long March 3B carrier rocket was unable to launch
Indonesia’s PALAPA-N1 satellite on April 9th (Harvey 2019). Similarly,
the Kuaizhou-11 carrier rocket experienced an abnormality after its
first flight mission, leading to mission failure on July 10th (Frick and
Niederstrasser 2018). Finally, the Kuaizhou-1A launch also failed in
September of the same year. From March 4, 2006 to March 13, 2020,
SpaceX conducted a total of 91 launch missions, with a success rate of
93.4% and 6 launch failures (McCall 2020). In addition to the primary
rocket recovery failure of Falcon 9 in 2020, SpaceX experienced at least
8 launch failures (Cantu and Lunsford 2022). The aerospace industry
must enhance the research and development technology of launch
vehicles and improve the safety of aircraft launches to ensure the safety
of space tourism passengers (Padhy and Padhy 2021). This requires
improving public awareness of spacecraft types, safety measures, and
launch processes to reduce resistance to space travel and encourage
safe participation in space tourism (Olya and Han 2020).

1.2.6 Safety of Landing


Landing a manned return capsule poses a significant challenge for
astronauts due to various procedures involved, including scorching,
black barricades, parachute deployment to reduce landing speed, and
the second speed of the return cabin, which remains at approximately
8 m (Debus and Arnould 2008). Such high speeds can cause damage to
the cervical vertebrae of passengers, regardless of their orientation
during landing (Desmoulin et al. 2021). To address this issue, China has
developed a solution involving gamma brake commanders located at
the bottom of the return capsule (Hughes 2011). These commanders
measure the capsule’s speed and height from the ground during the
final stages of landing, and upon reaching a predetermined height, they
issue an ignition command for the landing thrust engine (Springmann
et al. 2006). Gamma brake commanders have been utilized in previous
missions, including Shenzhou-8 to Shenzhou-12 (Aliberti and Aliberti
2015). The utilization of the gamma-ray detection technique allows for
the penetration of surface vegetation, resulting in highly accurate
measurements of the distance between the bottom of the return
capsule and the surface, with a precision level of centimeters (Østgaard
et al. 2019). Upon receiving instructions, the four landing thrust
engines work in unison to execute the “braking” process (Kuznetsov et
al. 2013). Each engine has the capacity to generate approximately 3
tons of reverse thrust instantaneously, and the combined output of the
four engines can exceed 10 tons of reverse thrust (Cutler and How
2015). As the return capsule approaches a distance of 1m from the
ground, all four engines are ignited simultaneously within a 10-ms
timeframe, causing a buildup of gas in the combustion chamber, which
generates high pressure and is ultimately expelled from the tail to
decelerate the landing speed through reverse thrust (Bryant et al.
2008). This process is also responsible for fire occurrence during the
landing phase, highlighting the significance of safety measures during
this critical stage (Dennehy 2008).

1.3 The Genesis of Space Tourism in China


The year 2021 has marked the advent of space tourism, with several
successful projects being undertaken worldwide (Villacé-Molinero et al.
2021). Numerous countries have initiated the construction and
implementation of space tourism projects (Dewily and Michael 2021).
The United States has demonstrated the feasibility of space tourism
through both theoretical and practical means (Cheong et al. 2022).
China has emerged as a leader in space science technology, with the
National Space Administration releasing its fifth white paper, “China’s
Space Program: A 2021 Perspective,” emphasizing the importance of
space technology as a reflection of a country’s competency of scientific
and technology (Becker 2022). To further advance space technology, it
is imperative to apply space technology to economic and social
dimensions (Scott and Mowen 2007). With China’s official claim of
developing space tourism, it is crucial to actively implement projects
through reasonable planning and measures (Crouch et al. 2009).
Therefore, China’s space tourism development is progressing through
National government departments’ evaluation of potential and actual
risks and potential comprehensively realized values of space tourism
projects (Dervay 2008), which enables the allocation of resources to
generate significant output. Such growth will increase economic output
value and benefit the country and its citizens.
Furthermore, developing space tourism experience projects in
China requires the effective integration of diversified and personalized
services into the innovative development and operation of space
tourism projects (Zheng and Liao 2019). Drawing from the experiences
of Europe and America, it is important to recognize that space tourism
should be a mass tourism activity rather than exclusive to professional
astronauts or the wealthy. The development of space tourism products
should extend beyond ground infrastructure to include space design,
construction, and development of tourism products (Tomlinson 2016).
This will promote the growth of related industries such as space
mining, satellite applications, space hotels, and space transportation
(Weinzierl 2018a). Ultimately, the realization of civilian space tourism
will make human space exploration activities more accessible and
popular. Currently, the operational expenses associated with space
tourism initiatives are exorbitant, rendering the services accessible
only to a select few affluent individuals. To ensure the sustainability of
space science and technology, the government, space technology
experts, and scholars must undertake comprehensive research on the
formulation of implementation systems, technological advancements
and innovations, service design, and other pertinent aspects of space
tourism projects. This will effectively reduce space tourism costs
through technological innovation, infrastructure development, system
establishment, and service design, thereby facilitating the market-
oriented growth of the space tourism industry. In addition to
showcasing national prowess, space tourism can serve as a crucial
pillar of industrial and economic development.

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Footnotes
1 The term “cosmic velocity” pertains to the four distinct initial velocities that an object assumes
upon departing from the gravitational field of celestial bodies. The first cosmic velocity is
determined by the presence of a dense atmosphere on the surface of the Earth, which impedes the
spacecraft's ability to move in a circular trajectory in close proximity to the planet’s surface due to
air resistance. Consequently, the spacecraft must ascend to an altitude of approximately 150
kilometers before it can achieve a circular trajectory, where the impact of air resistance is
negligible. At this altitude, the spacecraft attains a circling velocity of 7.8 km/s.
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_2

2. Space Firms
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

Transportation plays an essential role in facilitating travel (Perovic


2013). While various modes of transportation, such as sea, land, and air
are utilized in terrestrial tourism, space travel is unique in that
spaceships are the sole means of transportation (Abeyratne 2013). The
success of several foreign commercial space tourism projects in 2021
has gradually increased public awareness and belief that space travel is
no longer an unattainable dream (Blom and Mauno 2021). The
commercialization of space tourism began in 2001 and has experienced
significant growth in 2021 with the successful launches Virgin Galactic,
Blue Origins, and SpaceX (Pallathadka and Pallathadka 2022). However,
further efforts are required to develop and promote the privatization
and commercialization of space tourism (Oduntan 2016). This chapter
aims to introduce leading domestic and foreign commercial aerospace
companies and analyze representative private enterprises, hoping to
provide a reference for the commercialization and space travel of China
Aerospace Corporation.

2.1 Leading Commercial Aerospace


Companies in Western Countries
In the year 2021, several billionaires made significant strides in the
field of space tourism, thereby inspiring interest in this emerging
industry and generating anticipation for the arrival of the space
tourism era (Levers 2022). The success of these endeavors owes much
to the contributions of leading international commercial space
enterprises such as SpaceX, Virgin Galactic, and Blue Origin (Langerot
2022). This article provides a brief overview of these private aerospace
companies and analyzes the factors contributing to their success as
leaders in the contemporary aerospace business. Additionally,
promising private spacecraft companies in China are poised to become
prominent players in the aerospace industry (Shammas and Holen
2019).

2.1.1 SpaceX
Space Exploration Technologies Corporation, commonly referred to as
SpaceX, is an American space transportation company founded by Elon
Musk in June 2002, with its headquarters located in Hawthorne,
California, USA (Seedhouse 2013). The company’s spacecraft, “Dragon,”
was the first privately-owned spacecraft to transport humans to the
space station, capable of carrying up to seven passengers or a
significant amount of cargo to and from Earth’s orbit and beyond
(Harrison 2012). SpaceX’s Falcon 9, the world’s first orbital reusable
rocket, is designed and manufactured by the company, enabling the re-
launch of the most expensive parts of the rocket and reducing the cost
of space flight (Bjelde et al. 2008). This cost advantage has made
SpaceX the world’s leading space enterprise, with a goal to improve
service quality and quantity while reducing costs (Sawik 2023). The
company has launched tens of thousands of “Starlink” satellites, as
indicated by official statistics on its website, and its development
process is presented in Table 2.1.
Table 2.1 Development of SpaceX

Year Event
2006 In August, SpaceX acquired contracts from NASA for commercial rail transport services
(Coughlin et al. 2006)
2008 SpaceX announced that they had won a $1.6 billion contract for NASA’s commercial supply
service (Lambright 2015)
2012 In October, SpaceX commenced transporting merchandise to the International Space
Station through the Falcon 9 and “Dragon” spacecrafts, which were launched into orbit.
The duration of their visit to the space station was 18 days (Vozoff and Couluris 2008)
2013 In June, the successful deployment of Turkmenistan’s inaugural satellite was achieved. In
October, a significant milestone was reached with the successful launch and precise
landing of the “Grasshopper” rocket, representing the first instance of reusable rockets
being developed by humans. In December, SpaceX accomplished the inaugural launch of
the “SES-8 Commercial Communication Satellite” utilizing the Falcon 9 rocket (Garcia
Sánchez 2022)
2014 In May, the Falcon 9 reusable rocket successfully landed at an altitude of 1,000 m.
However, in August, the Falcon 9 rocket with three engines experienced a catastrophic
explosion while in flight. In September, the announcement of the “Space Taxi” contract
was made, outlining plans to transport astronauts to the International Space Station in the
coming years (Seedhouse and Seedhouse 2016)
2015 In November, NASA secured an order for the “Space Taxi” program. In December, the
Falcon 9 rocket was successfully launched, marking the first instance of successful
recovery of a first-stage rocket in human space exploration history (Chang and Chern
2016)
2017 In March, the “second-hand” rocket was utilized for the inaugural launch of a satellite.
Subsequently, in June, the maiden Falcon 9 rocket landed on a floating platform in the
Pacific Ocean within eight minutes of its launch, and was triumphantly retrieved at sea
(De Gusseme 2021)
2018 A total of 11 “second-hand” rockets were successfully launched
2019 Space X has announced the rocket carpool launch initiative, stating that it has the
capability to launch satellites into the sky at a starting cost of no less than $2.25 million
(de Freitas Bart and Hoffman 2021)
2020 In February, a proposal for private space tourism was unveiled, featuring spacecraft
capable of accommodating up to four passengers (Seedhouse 2022a)
2021 A historic milestone was achieved in September as the inaugural fully commercial manned
space mission launched four non-astronaut individuals into space. Notably, the rocket
booster successfully landed on the uncrewed recovery vessel of Space X
Year Event
2022 In April, the Congregational Space Company successfully executed the inaugural all-
civilian space mission, wherein four non-astronaut civilians were launched into space and
subsequently docked at the International Space Station to partake in the novel experience
of space tourism

2.1.2 Virgin Galactic


Virgin Galactic, established in 2004, is owned by British tycoon Richard
Branson (Anderson and Piven 2005). The Virgin Galactic spacecraft is a
pioneering innovation designed to cater to the general public. Divergent
from SpaceX’s Mars colonization initiative and Blue Origin’s sub-orbital
spaceflight services, Virgin Galactic aims to provide individuals with the
opportunity to travel to the brink of space, enabling them to witness the
magnificence of Earth from a novel perspective (Khan 2022).
In contrast to traditional vertical launch systems, Virgin Galactic
employs a rocket-powered spacecraft, known as Spacecraft II, which is
secured beneath a mother ship, The White Knights II, during takeoff
(Pallathadka and Pallathadka 2022). The mother ship taxis and takes
off with Spacecraft II on the runway until reaching an altitude of
approximately 13 km, at which point the pilot of Spacecraft II issues a
command to release the spacecraft (Macdonald 2018). Following a brief
period of coasting, the rocket engine of Spacecraft II ignites, propelling
it to a speed approximately three times that of sound before shutting
down and ascending to the highest point through inertia (Sutton and
Biblarz 2016). During this phase of inertial flight, passengers
experience weightlessness for several minutes and observe the arc-
shaped horizon of the Earth (Petrov 2021). The spacecraft then returns
to the ground under the influence of Earth’s gravity, utilizing its large
tail and aerodynamic forces to glide and land on a designated runway
(Stroud and Klaus 2006). The successful completion of the first full
flight in July 2021 marks the world’s first successful commercial space
flight (Yost et al. 2021) (Table 2.2).
Table 2.2 Development of Virgin Galactic

Year and Event


date
February Release a new version of spacecraft for space travel in the future
19th, 2016
Year and Event
date
September The inaugural flight of the spacecraft, “VSS Unity” has been successfully
8th, 2016 accomplished
May 22nd, The initial trial of a manned rocket flight was a triumph, and it is anticipated that
2021 commercial flight offerings will be formally available in 2022, with the necessary
certification obtained during that same year
July 11th, The successful inaugural commercial space flight was completed by Richard
2021 Branson, the 70-year-old founder, who participated in and completed the first
full-scale test mission

2.1.3 Blue Origin


Blue Origin is a privately-owned space enterprise established by Jeff
Bezos, the CEO of Amazon, in 2000 and the company is headquartered
in Kent, King County, Washington, in the United States (Clewley 2021).
While Space X primarily launches satellites into orbit or delivers
supplies to the International Space Station, Blue Origin’s Shepard
rocket is primarily designed for aesthetic purposes (Khan 2023). Its
primary objective is to provide passengers with a four-minute
experience of weightlessness and a panoramic view of the Earth (Edge
2020).
Blue Origin stands out among the three companies as the sole entity
to have conducted two commercial manned flights in 2021 (Martin and
Freeland 2022). During both flights, four astronauts were transported
to the Ká rmá n line, which is situated approximately 100 km above the
Earth’s surface, with a flight duration of approximately 11 min (Wagner
2021). It is noteworthy that Blue Origin’s inaugural flight secured four
Guinness World Records simultaneously, including the oldest individual
to have traveled to space, Wally Fink, who was 82 years old at the time
of the flight (PN Staff 2022). The flight also facilitated the youngest
person to have traveled to space, Oliver Daemen, who was 18 years old
(Pallathadka and Pallathadka 2022). Furthermore, the flight marked
the first instance of siblings, founder Jeff Bezos and his younger brother
Mark Bezos, traveling to space together (Robinson 2009). Lastly, the
flight also marked the first time that paying passengers were able to
participate in a manned mission flight (Hughes and Rosenberg 2005).
In addition, on October 25th, 2021, Blue Origin announced the
construction of a commercial space station in low orbit (Aponte
Williams and Mosher 2022). The primary objective of this space station
is to facilitate logistics, transportation, residential, and storage services
for commercial purposes, which are expected to commence within the
next decade (Swanson and Birur 2003). In the past few decades,
commercial aviation has primarily focused on transporting goods, and
this platform can serve as a storage or transit platform (Mapefane
2015). As the manned business progresses, this platform may evolve
into a space hotel prototype (Ashford 2007) (Table 2.3).
Table 2.3 Development of Blue Origin

Time Event
November The New Shepard rocket was sent up to a height of 100 km and then successfully
2015 retrieved
December The seventh launch of the New Shepard rocket was successful, as it landed
2017 without any issues and deployed the uncrewed Crew Capsule 2.0 into space
April 30th, The New Shepard suborbital craft was launched and retrieved successfully,
2018 achieving a maximum altitude of 351,000 feet (107 km)
July 20th, Blue Origin’s inaugural crewed mission lasted for 11 min and reached 100 km
2021 above the planet’s surface

2.1.4 Successful Voyages of SpaceX


In February 2021, SpaceX unveiled its latest mission, Inspiration 4,
marking its first fully commercial endeavor, which involves using a
manned Dragon spacecraft and a Falcon 9 rocket to transport a group of
four non-astronauts on a three-day journey into Earth’s orbit (Wang
2022). Notably, the spacecraft and rocket were repurposed from
previous missions, highlighting the company’s commitment to
sustainability (Sirieys et al. 2022). The successful launch and return of
Inspiration 4 on September 16th and 19th, respectively, serve as a
testament to the idea that space exploration is accessible to all and that
ordinary individuals can make a significant impact in this field (Larsen
2017).
The study involved four individuals, comprising two males and two
females, with diverse professional backgrounds, including a billionaire
entrepreneur, a doctor’s assistant, a data engineer, and a professor of
earth science. The Inspiration 4 mission was facilitated by billionaire
Jared Isaacman, who handpicked three individuals to accompany him
on a series of activities and the mission was also aimed at raising funds
for St. Jude, a children’s hospital that offers free cancer treatment
(Nesvold 2023). The four participants of Inspiration 4 embody
leadership, hope, generosity, and prosperity. Before their departure,
they underwent comprehensive training from SpaceX, including orbital
mechanics, microgravity, emergency preparedness, spacesuit donning
and doffing, cabin entry and exit, and a final full-task simulation
exercise (Kanas 2023) (Table 2.4).
Table 2.4 Directory of participants of Inspiration 2–4

Personnel Team position Age Original Acquisition Remarks


occupation mode
Jared Mission commander 41 Shift4payments Initiator Representing
Isaacman CEO, pilot the spirit of
leadership
Hayley Medical officer 29 Physician On behalf of St.
Arceneaux (execution and assistant Jude Children’s
experiment of medical Hospital
tasks)
Christopher Task commissioner 41 Data engineer Sweepstakes Representing
Sembroski (scientific experiment, the spirit of
task control and generosity
communication)
Sian Proctor Flight commissioner 51 Geology Shift4Shop Representing
(providing support professor company the spirit of
and assistance to the customers leadership.
commander) Prosperity
Astronauts who
have been
shortlisted for
NASA
The Inspiration 4 mission marked a significant milestone in the
history of space exploration as it became the first privately-funded
space flight to Earth (Urquieta et al. 2022). This achievement
showcased the remarkable technological advancements of SpaceX,
which has emerged as a prominent player in the commercial space
travel industry. The success of this mission can be attributed to a
multitude of factors, including the prevailing socio-economic conditions
and the contributions of the individuals involved. In the subsequent
sections, we shall endeavor to provide a succinct analysis of the
underlying reasons for its success.

2.1.4.1 Elon Musk, the Visionary Entrepreneur


Elon Musk, the founder of SpaceX, is widely regarded as the driving
force behind the company (Metta et al. 2022). Additionally, as the CEO
of Tesla, he has been likened to the fictional character “Iron Man”
(Urban 2015). A journalist once remarked that Musk is not merely an
entrepreneur but a visionary who possesses the courage to pursue his
dreams with unwavering determination (Archwell and Mason 2021).
His entrepreneurial spirit and passion have been instrumental in his
success thus far. Despite being a multi-millionaire prior to founding
SpaceX, Musk sold his previous ventures and embarked on this new
venture, which has relied heavily on his leadership and guidance to
achieve its current level of success (James et al. 2018).

2.1.4.2 Talents and Technology


As per reports from American media, SpaceX owes its success to the
prompt response of its teams, the eagerness of its staff to engage in
discussions, and their relentless efforts day and night (Muegge and Reid
2019). The founder, Elon Musk’s passion for the space industry, his
diligent work ethic, and his expertise in technology and management
have attracted a group of like-minded individuals (Bogers et al. 2019).
Consequently, those who work with Musk share his values. SpaceX has
implemented a flat management system, where a vice president leads
the team directly to conduct project research, reducing communication
costs and ensuring equal treatment of all employees, encouraging
enthusiastic participation in project development (Dubin 2023). This
approach has significantly enhanced work efficiency and employee
morale. Furthermore, NASA’s technical support and talent have played a
crucial role in SpaceX’s success. Some of the company’s core personnel
are former NASA employees who have retired or resigned. NASA has
also provided SpaceX with access to technologies from the Apollo
program to support the research and development of the Falcon series,
which has been instrumental in the success of the Falcon (Seedhouse
2015).
2.1.4.3 Capital
In December 2009, NASA awarded SpaceX a space station contract
worth $1.6 billion, which provided crucial support for the company
during a period of financial instability (Dreyer 2009). This investment
was in addition to the funds already invested by the company’s founder.
In 2010, SpaceX and Boeing were awarded $50 million by NASA as part
of the Barack Obama Administration’s program (Seedhouse 2022b).
The United States’ close integration of military and civilian sectors
enabled SpaceX to secure a satellite launch contract worth $83 million
from the US military in 2016, and to fund the research and
development of the Dragon spacecraft engine with $61 million (Canis
2016). In 2022, SpaceX successfully completed a new round of
financing, raising $1.72 billion and achieving a valuation of $125 billion
(approximately CNY 840 billion) (Harris and Wonglimpiyarat 2022).

2.1.4.4 Jared Isaacman’s Remarkable Contribution


Jared Isaacman played a pivotal role in the Inspiration 4 missions of
2021 and provided financial backing for the event and contributed to
the flight’s planning and design as the sponsor (Cavallaro 2023).
Furthermore, the entire process, including preparations for a successful
return, was documented in the form of a documentary, which holds
significant value in promoting commercial space travel through the
power of word-of-mouth.

2.2 Leading Commercial Aerospace


Companies in China and Related Sector
In 2014, the State Council of the People’s Republic of China (PRC)
released a directive titled “Guidance on innovative investment and
financing mechanisms in key areas to encourage social investment” that
aimed to promote the involvement of private capital in developing
national civil space infrastructure, including satellite development,
launch, and operation (Peng et al. 2014). As a result, numerous private
space companies emerged, marking the inception of China’s
commercial space industry (Sénéchal-Perrouault 2021). The State
Council has also issued white papers, such as “China Space Activities
2016” and “China’s Space Program: A 2021 Perspective”, outlining
China’s plans for its commercial aerospace industry (Nie 2020). These
documents emphasize the need to encourage and guide private capital
and social forces to participate in aerospace scientific research and
production, space infrastructure construction, space information
products and services, satellite operations, and other aerospace
activities in an orderly manner (Cresto Aleina et al. 2017).
Furthermore, the development of commercial aerospace, including
space tourism, is vigorously promoted.
In 2017, the “Roadmap for the Development of the Space
Transportation System 2017–2045” was published as a strategic plan
for advancing manned space exploration (Goswami). China’s Long
March rocket program has scheduled a manned space shuttle launch
for 2024, while CAS Space, a commercial branch of the Chinese
Academy of Sciences, is planning a space tourism project for 2025 to
keep pace with China’s progress in outer space tourism (Niederstrasser
2022). The development of China’s private aerospace enterprises is also
progressing in tandem with space travel. On July 25, 2019, the Star
Glory Hyperbola-1 carrier rocket was successfully launched, marking
the first successful orbit of a rocket by a private aerospace company in
China (He 2023). This achievement demonstrates the capability of
China’s leading private companies to undertake such missions. After the
United States, China has become the second country to possess private
space satellite launching service capability. Currently, China’s private
space companies are primarily engaged in two areas: rocket
manufacturing and satellite manufacturing (Zhang and Yang 2023).
In recent times, certain scholars have posited that the advancement
of China’s commercial aerospace necessitates the amalgamation of
government and military efforts, commencing with top-level planning,
legislation and policies, data sharing, release of aerospace
infrastructure, innovation, as well as government and military
procurement services (Joshi 2022). Despite over 300 commercial
aerospace firms in China by the end of 2020, no manned space tourism
initiatives have been undertaken (Lele 2018). The Long March space
shuttle program, slated to utilize the excess capacity of a series of
rocket launch missions in 2024 to pre-load passengers for space
tourism, is eagerly anticipated (Miraux et al. 2022). This project would
be China’s first civilian space tourism endeavor, achieved by realizing
short-distance suborbital flight. The ultimate objective is to establish a
long-distance tour group capable of accommodating 10–20 individuals
before 2035 (Akhtar et al. 2020). This plan is instrumental in
promoting the growth of commercial aviation in China. However,
current research is inadequate to meet the industry’s development
requirements, necessitating a long-term and in-depth investigation into
the commercial development of China’s aviation, with a targeted
analysis of the country’s commercial aviation development process.

2.2.1 Development of Spacecraft Launch Facilities in China


To launch a spacecraft, it is necessary to construct a launch site in a
location with level terrain, favorable climate, and low population
density (Liu et al. 2010). Typically, launch sites are repurposed from
previous rocket or missile testing facilities, although specialized sites
may need to be constructed (Gorman 2009). These sites encompass a
test area, launch area, launch command, and control center,
comprehensive measurement facilities, service support facilities, and
related management service departments (Keane and Carr 2013).
China’s commercial space industry is still in its early stages, with the
first private commercial space launch site in Wenchang, Hainan being
established in July 2022 (Sénéchal-Perrouault 2023). This event
marked a significant milestone in China’s efforts to privatize space
tourism by transferring technology from the integration of defense and
civilian technologies. While private space companies may apply to
launch from state-owned sites such as Jiuquan and Xichang, the strict
confidentiality requirements of these sites may have a negative impact
on commercial space launch activities (Tronchetti and Liu 2021)
(Table 2.5 and Fig. 2.1).
Table 2.5 Major spacecraft launch facilities in China

Serial Name Time of Characteristics


number construction
1 Jiuquan Satellite 1958 The only manned space launch site in China at
Launching this moment
Center
2 Taiyuan Satellite 1967 Mainly undertake launch missions in a sun-
Launch Center synchronous orbit
Serial Name Time of Characteristics
number construction
3 Xichang Satellite 1970 Mainly in charge of tasks related to launching
Launch Center experiments and applications, including
satellites used for communication, broadcasting,
and meteorology
4 Wenchang 2009 China’s first open coastal space launch base and
Satellite Launch low latitude launch site
Center
5 China Dongfang 2019 Launch port at sea
Spacecraft
Launch Port

Fig. 2.1 Spacecraft launch facilities in China1


In addition to the national space launch site, a private commercial
launch site has been proposed in Ningbo, adjacent to the Wenchang
launch site in Hainan (Wu and Long 2022). The proposed commercial
space launch site will cover a total area of approximately 67 km2,
comprising 35 km2 for the space launch site and 32 km2 for industrial
supporting areas (Lee 2008). The site is expected to function as a
commercial space launch base, with an annual launch capacity of 100
times and a supporting industrial base worth 100 billion yuan (Liu et
al. 2019). The location of Xiangshan offers significant advantages, as its
geographical latitude is similar to that of Xichang (Wang 2020).
Xiangshan is suitable for launching various spacecraft into low Earth
orbit, as well as geosynchronous, solar synchronous, and polar-orbiting
spacecraft with higher orbital altitudes, using multi-stage rockets (Guo
et al. 2018). Xiangshan can meet the diverse space launch requirements
of different orbits and has a competitive edge in the commercial space
launch market (Lu 2003).
Regarding safety concerns, Xiangshan in Ningbo is situated in a
coastal area that offers the benefit of maritime transportation (Li et al.
2022). The rocket launch process takes place primarily over the ocean
to mitigate the risk of impacting residential areas (Profeta et al. 2010).
Compared to other national launch sites located inland, such as Jiuquan
and Xichang, Xiangshan has a distinct advantage regarding location
selection for rocket transportation and launch debris disposal.
Additionally, Xiangshan is situated in the Yangtze River Delta region,
which boasts well-developed external communication channels and
transportation networks (Yuyuan 2014). This region is known for its
strong financial and manufacturing industries, which bodes well for the
future development of the domestic and international aerospace
industry.

2.2.2 China’s Leading Commercial Aerospace Companies


The field of commercial aerospace promotes private sector involvement
in space activities through market-based mechanisms, with private
enterprises assuming the associated investment risks and
responsibilities (Lepore 2005). The “China Commercial Aerospace
Research Report 2021” has identified the top 20 commercial aerospace
enterprises based on their background, technology, and financing, with
the five most influential and powerful private commercial aerospace
enterprises being LinkSpace, Star Glory, OneSpace, LandSpace, and
Galactic Energy (Sénéchal-Perrouault 2021). Among these, Origin
Space, established in 2019, has shown great potential in space tourism
and is poised to become a leading new venture (Shammas and Holen,
2019) (Table 2.6).
Table 2.6 Top 20 Chinese commercial aerospace companies in 2021

Name SATPRO Space Jiahe Info Chang Guang Commsat


Transportation Satellite
Technology Co.,
Ltd
Establishment 2007/4 2012/8 2013/4 2014/12 2015/6
Industrial Satellite Satellite Satellite Satellite Satellite
chain launching application application manufacturing manufacturing
Name LandSpace Space Pioneer Beijing Beijing ExPace
Technology Space Trek OneSpace
Corporation Technology Technology Co.,
Co., Ltd Ltd
Establishment 2015/6 2015/6 2015/6 2015/8 2016/2
Industrial Satellite Rocket Satellite Rocket Satellite
chain launching manufacturing launching manufacturing launching
Name Aerospace Star Glory Galactic Tianta China
Yuxing Energy Aerospace
Establishment 2016/10 2016/10 2016/12 2017/3 2017/4
Industrial Satellite Satellite Satellite Satellite Satellite
chain launching launching operation launching manufacturing
Name Mino Space Jzyj Space Galactic Ada Space Rocket Pow
Energy
Establishment 2017/8 2017/10 2018/2 2018/5 2018/8
Industrial Satellite Satellite Satellite Satellite satellite
chain manufacturing manufacturing launching application launching

2.2.2.1 LinkSpace
Beijing LinkSpace Technology Co., Ltd., founded by Hu Zhenyu in 2014,
has secured a round of financing worth tens of millions of yuan in
March 2017 (Harvey 2019). The company’s primary offerings include
the RLV-T series, SRV-1, and NewLine-1 (LinkSpace 2021). With fully
reusable rocket engineering capabilities, LinkSpace is capable of
providing commercial launch services worldwide (Niederstrasser
2022). The company operates a rocket assembly plant and test base in
Shandong and a commercial launch base in Qinghai (Hong 1995).
Currently, LinkSpace’s rockets possess the ability to enter sub-orbit,
and their test success rate surpasses the industry average (LAT Group
2021) (Table 2.7).
Table 2.7 Development of LinkSpace

Time Event
May A new and improved rocket called RLV-T5 has been created, which utilizes five liquid
2018 rocket engines and its most notable characteristic is its ability to be recycled
August The RLV-T5 recoverable rocket underwent its third test of flying at a low altitude and
2019 being retrieved successfully
End of The initial launch vehicle creation, known as NewLine-1, has a planned debut in orbit
2021

2.2.2.2 Star Glory


Beijing Star Glory Space Technology Co., Ltd., known as Star Glory, was
established in October 2016 by Peng Xiaobo (Star Glory 2021). The
company specializes in the production of various products, including
the Hyperbola-2, a reusable liquid launch vehicle, suborbital concept
aircraft, Focus-1, a reusable, variable thrust liquid rocket engine, Focus-
2, a 100-ton reusable, variable thrust liquid oxygen methane engine,
and satellite Control-1. The company aims to provide commercial
intelligent launch vehicles of high quality, low cost, and fast response
time. Additionally, Star Glory offers systematic launch services. As of
August 2020, the company has successfully completed b-round
financing of RMB 1.2 billion (i-space 2016) (Table 2.8).
Table 2.8 Development of Star Glory

Time Event
July 25, Star Glory’s launch vehicle was launched for the first time. It achieved suborbital orbit
2019 with great accuracy, making it the first private company in the world, other than the
United States, to launch a rocket into orbit successfully
May 27, The Star Glory Focus-1 demonstrates the ability to perform a 500-s test run for the
2020 second time using its liquid oxygen methane engine. This successful test run has made
Focus-1 the first liquid oxygen methane engine in China capable of a second start
End of 2-7 launch vehicles are expected
2021

2.2.2.3 OneSpace
One Space Technology Group Co., Ltd., also known as OneSpace, was
founded in August 2015 by Shu Chang (Liu et al. 2019). The company
specializes in OneSpace Rocket, OneSpace Electronics, and OneSpace
Power, with its primary products being the OS-Xseries and OS-M series
rockets, which are small and medium-sized solid rocket launching
platforms (OneSpace 2018). OneSpace is dedicated to constructing the
“Rocket +” industrial service platform and delivering commercial
satellite launch services worldwide. The company has three research
institutes and two research centers. On May 14th, 2021, the
construction of the second phase of OneSpace Rocket Intelligent
Assembly Manufacturing Base commenced in Liangjiang New District,
Chongqing, which will provide robust support for its rocket research
and development. In September 2020, the company completed
strategic financing, although the exact amount has not been disclosed
(One Space 2019) (Table 2.9).
Table 2.9 Development of OneSpace

Time Event
May 17th, The “Chongqing Liangjiang Star” by OneSpace has been launched successfully,
2018 marking the first flight of China’s initial privately developed commercial
suborbital rocket
September The company OS-X1 rocket and “Chongqing Liangjiang Star” have successfully
7th, 2018 launched their second commercial suborbital rocket that they developed on their
own
March 27th, The Lingque-1 B was launched from the Jiuquan Satellite Launch Center using an
2019 OS-M solid-state carrier rocket. However, the rocket lost its control after the first-
stage separation, resulting in the failure of the launch mission (Niederstrasser
2022)

2.2.2.4 LandSpace
LandSpace Technology Co., Ltd. was established in June 2015 by Zhang
Changwu and is a prominent commercial enterprise in China that
specializes in the development and operation of liquid rockets (Uhalley
Jr., 2018). The company recently secured RMB 1.2 billion in financing
during its C+ round in September 2020 (Liu et al. 2019). LandSpace’s
primary offerings include rockets, such as Suzaku No.1 and Suzaku
No.2, and engines, including the Tianque TQ-12 and 80-ton liquid
oxygen methane engine system. The company’s primary focus is on
meeting the global demand for satellite constellation launches and
providing standardized launch service solutions to the global market
(Zhai et al. 2022). The LandSpace company has established several
research and development centers, including the Beijing R& D Center,
Xi’an R& D Sub-center, and the Yangtze River Delta Region Center,
which comprises the Intelligent Manufacturing Base, Huzhou Hot Test
Center, and Jiaxing LandSpace Center (Landspace 2020) (Table 2.10).
Table 2.10 Development of LandSpace

Time Event
October 2018 The launch of the blue space rocket named “Suzaku-1” was unsuccessful due to
an abnormal third stage, resulting in the failure to put the satellite into orbit
November The test of the two-stage rocket engine for the Suzaku No.2 liquid carrier
13th, 2020 rocket was entirely successful (Manzagol-Harwood 2022)
January 29th, The test for separating the fairing of the Suzaku No.2 rocket was successful
2021

2.2.2.5 Galactic Energy


Galactic Energy (Beijing) Space Technology Co., Ltd. is a commercial
enterprise that specializes in the development of launch vehicles
(Sénéchal-Perrouault 2023). It was established in February 2018 by Liu
Baiqi and focuses on providing low-cost commercial rocket launch
services. The company’s primary offerings include Ceres, Asterisk of
Wisdom, and engine services such as the “Boundary” power system,
reusable liquid oxygen/kerosene engine “Sky” engine, and “Lightyear”
engine (Galactic Energy 2022). In September 2020, Xinghe Power
announced the successful completion of Series A financing of 200
million yuan. In March 2021, Galactic Energy completed the first
construction phase for the “Ceres-1 Solid Launch Vehicle Intelligent
Manufacturing Base” in Jianyang city, Chengdu. The primary objective
of this base is to achieve an annual production capacity of 24 rounds of
Galactic Energy solid rockets (Galactic-Energy 2020) (Table 2.11).
Table 2.11 Development of Galactic Energy

Time Event
December The Ceres rocket’s three-in-one test was a resounding triumph
2019
Time Event
July 2020 The matching test between the “Ceres-1” full arrow and the ground equipment
has been successfully completed
November 7th, The “Ceres-1 (Yao-1)” rocket was launched with success and it placed the
2020 “Apocalypse Eleven” into a sun-synchronous orbit at a distance of 500 km

2.2.3 Challenges of Commercial Aerospace Companies in


China
2.2.3.1 Lack of Funds
In the realm of manned space exploration, significant investment in
research and development is required during the early stages, resulting
in a lengthy R&D cycle and reliance on social capital for financing
(Denis et al. 2020). Investors seek rapid returns on their investments,
leading to a lack of sustainable capital for China’s private enterprises.
Before 2015, only China Aerospace Science and Technology Group and
Aerospace Science and Technology could construct rockets and launch
satellites (SA & Mao). However, over 160 commercial aerospace
enterprises have emerged in China, encompassing 36 satellites, 22
launches, 39 operations, and 44 applications (Liu et al. 2019). Despite
this growth, the challenge of securing financing has resulted in the
likelihood that more than 20 of the initial batch of rocket-building
enterprises will not survive (Orr 2019).
The commercial aerospace industry holds great promise, but its
high investment requirements and slow returns deter many private
enterprises. Notably, unlike Space X, Chinese commercial aerospace
enterprises receive orders from the state and therefore do not face a
lack of state funding. In 2022, Space X successfully secured a new round
of financing worth $1.72 billion, resulting in a valuation of $125 billion
(approximately RMB 840 billion) (Forbes 2022). A significant challenge
for private aerospace enterprises in China is the difficulty in obtaining
private financing and the absence of state order funds (Table 2.12).
Table 2.12 Funds of commercial aerospace in China

Founding Company Financing amount (RMB)


time
August 2012 Space 2019.3 Angel financing round: tens of millions
Transportation 2019.8 Equity financing: undisclosed
Founding Company Financing amount (RMB)
time
2019.12 Pre-A series round: nearly 100 million yuan
2014 LinkSpace 2014 Angel financing round: millions of yuan
2017.03 Series A round: tens of millions of yuan
June 2015 LandSpace 2015 Angel financing round: ten million yuan
2016.10 Series A round: over 100 million yuan
2017.4 Series A+ round: tens of millions of yuan
2017.12 Zhanlu Investment: 200 million yuan
2018.4 Series B round: 200 million yuan
2018.11 Series B+ round: 300 million yuan
2016.6 Series B++ round: 100 million yuan
2019.12 Series C round: 600 million yuan
2020.9 Series C+ round: 1.2 billion yuan
June 2015 Space Trek 2017.11 Angel financing round: ten million levels
2019.09 Pre-A series round: tens of millions of yuan
August 2015 OneSpace 2015.12 Angel financing round g: 10 million yuan
2016.4 Pre-A series round: undisclosed 2016.10 Series A
round: over 100 million yuan
2018.1 Series A+ round:200 million yuan
2018.8 Series B round RMB 300 million in 2018
2019.3 Series C round: undisclosed
2019.7 Series C+ round: undisclosed
2020.9 Strategic financing: undisclosed
October 2016 Star Glory 2017.11 Angel financing round: undisclosed
2018.03 Pre-A series round: undisclosed
2018.7 Series A round: undisclosed
2019.7 Series A++ round: undisclosed
2019.11 Equity financing: undisclosed
2020.08: Series B round 1.2 billion yuan
November Deep Blue 2018.5 Strategic financing: undisclosed
2016 Aerospace 2019.1 Seed Financing round: tens of millions of yuan
2020.6 Pre-A series round: 100 million yuan
March 2017 S Motor 2017.11 Angel wheel: not disclosed
October 2017 JZYJ Space 2018.1 Angel financing round: undisclosed
2019.1 Pre-A series round: tens of millions of yuan
Founding Company Financing amount (RMB)
time
February Galactic Energy 2018.10 Seed financing round: 20 million yuan
2018 2019.4 Angel financing round: 100 million yuan
2019.12 Pre-A series round: 150 million yuan
2020.09 Series A round: 200 million yuan
September Enter Space 2018.9 Equity financing: undisclosed
2018
April 2019 Space Pioneer 2019.7 Angel Wheel: tens of millions of yuan
2020.4 Pre-A series round: over 100 million yuan
2020.09 Series A round: over 100 million yuan
April, 2020 Xingjian Aerospace NIL

Source Sina Technology (Peng et al. 2020)

2.2.3.2 Challenges in Acquiring Rights to Intellectual


Property and Technology
The aerospace industry in China is intricate and encompasses various
aspects such as satellite production, launching, operation, and
maintenance, which involve complex technologies (Wood and Weigel
2012). The primary technologies for manufacturing rockets and aircraft
in China are primarily concentrated in China Aerospace Science and
Technology Corporation and Aerospace Science and Technology
Corporation. The emergence of commercial aerospace has led to China’s
aerospace market opening to private enterprises, which may result in
the loss of state-owned assets due to technology export and transfer
(Zenglein and Holzmann 2019). Additionally, ensuring the rationality of
intellectual property rights and equity distribution is crucial when
opening technology to private enterprises. Currently, the government
aims to promote the development of the private aerospace industry by
integrating defense and civilian technologies through technology
transfer (Meng and Wang 2023).

2.2.3.3 Shortage of Aviation Educational Institutions


About the development of skilled individuals, China has a limited
number of aerospace colleges, with only nine in existence. Among
these, the three institutions classified under the 985/211 program,
namely Erbin University of Technology, Northwestern Polytechnical
University, and National University of Defense Technology, provide
essential aerospace majors, but remain scarce in number. Furthermore,
a significant proportion of graduates from these institutions have
pursued careers within the state-owned Aerospace Science and
Technology Corporation, its affiliated institutions, or research institutes
located across the country (Li et al. 2003). The current situation is not
favorable for the growth of the workforce in private commercial
aerospace enterprises. Consequently, several commercial aerospace
companies have expressed their desire for the government to provide
settlement objectives to entice professionals who aspire to work within
the system (Liu et al. 2021) (Table 2.13).
Table 2.13 Colleges and universities offering aerospace studies in China

University Type
Beihang University World-renowned high-level universities
Nanjing University of Aeronautics and Astronautics China’s first-class universities
Civil Aviation University of China Regional first-class universities
Nanchang Hangkong University Regional first-class universities
Shenyang Aerospace University Regional first-class universities
Civil Aviation Flight University of China Regional first-class universities
Xi’an Aeronautical University Regional high-level universities
Guilin University of Aerospace Technology Famous regional universities
North China Institute of Aerospace Engineering Famous regional universities

2.2.4 Recommendation for the Advancement of Privately-


Owned Aerospace Businesses in China
The infusion of capital has expedited the metamorphosis of China’s
commercial aerospace industry (Kovacic 2019). However, it is currently
in its nascent stage and its prospective growth is contingent upon the
collaborative endeavors of the government, corporations, and investors
(Zhang and Zeng 2021). Against the backdrop of the amalgamation of
defense and civilian technologies and drawing inspiration from the
triumphs of foreign commercial aerospace entities like SpaceX, this
literature proposes the ensuing recommendations for advancing
China’s commercial aerospace (Goswami and Garretson 2020).

2.2.4.1 Investment Directed by the Government


In contrast to other sectors, investment in commercial aerospace
exhibits distinct features such as prolonged gestation periods,
substantial capital requirements, and delayed returns (Altfeld 2016).
Currently, soliciting involvement from private investors is a crucial
strategy for advancing the growth of the global commercial aerospace
industry (Liu et al. 2020). The establishment of the National Aerospace
Industry Investment Fund can aid commercial aerospace enterprises in
various processes such as project design, research and development,
and production (McAdam et al. 2008). Furthermore, qualified private
enterprises can receive orders from the government and military, and
their products and services can be purchased to address the issue of
continuous funding in the early stages of the enterprises. The
development of private enterprises with technical capabilities similar
to SpaceX is crucial for securing commercial orders from both state-
owned and private enterprises (Frankowski 2017).

2.2.4.2 Collaboration Platform That Enhances Technical


Exchanges
To facilitate the growth of commercial aerospace enterprises, it is
recommended that the government and state-owned enterprises
gradually open up their technology, products, and infrastructure (Fan
and Hope 2013). This will promote the sharing of aerospace resources
and the provision of related services (Chung and Tan 2022). To achieve
this, establishing a national space research center is proposed, as the
development of commercial space requires the joint efforts of both the
government and the market. Currently, China’s aerospace research
institutes are all affiliated with state-owned enterprises, but they are
unable to provide sufficient technical support to private enterprises
due to concerns about the potential leakage of aerospace science and
technology (Capisani 2020). It is imperative to acknowledge the
transfer of commercialized technology from the Western aerospace
industry to private enterprises in China to bridge the gap in commercial
aerospace development (Launius 2020). To facilitate this, a national key
laboratory can be established through collaboration between the
National Space Administration and enterprises to manage and facilitate
technical exchanges. Additionally, developing policies that integrate
defense and civilian technologies is crucial, including constructing
commercial launch sites and adopting market-based modes for
operation and management (Nie 2020). In July 2022, China successfully
established its first privately-owned commercial space launch site in
Wenchang, Hainan (Dahm 2023). This achievement marks a promising
beginning for future projects. Given favorable conditions within the
commercial alliance, the establishment of additional private
commercial space launch sites in other locations can facilitate the
vertical integration of the private space industry chain. As rockets
become increasingly reusable and radio frequency expands, the
“construction, management, transportation, and use” of commercial
launch sites will be undertaken by distinct roles. In the future, it is
expected that the operating mode of aviation airports will be adopted,
whereby airport builders will construct the facilities, air traffic control
will manage operations, and aerospace companies will be responsible
for the execution of launches (Antoine and Kroo 2004). As users and
consumers become more involved, the development of China’s private
commercial aerospace industry is expected to progress naturally (Lee
et al. 2021).

2.2.4.3 Foster School-Enterprise Collaboration and Cultivate


Innovative Talents
Given China’s limited number of aerospace academic institutions, most
skilled individuals tend to gravitate toward state-owned enterprises
and research institutions. Therefore, state-owned enterprises, research
institutions, and commercial aerospace enterprises must collaborate to
devise a training program to cultivate innovative talent. To this end, it is
recommended that these entities engage in talent exchange programs
and organize study tours. Additionally, commercial aerospace
enterprises should establish partnerships with academic institutions to
develop innovative talent training programs, offer corporate
scholarships, and provide internship opportunities. These initiatives
will promote talent development and build a talent pool for commercial
enterprises.
2.3 The Emergence of Private
Commercialization in China’s Aerospace
Industry
The space industry in China is primarily managed by the central
government. In April of 2022, the Shenzhou-13 spacecraft
accomplished the longest duration of manned flight in orbit, lasting
183 days, and successfully fulfilled China’s significant objective of
manned spaceflight (Madhusudan 2022). The process of returning a
manned spacecraft from a space station involves several stages. Firstly,
the spacecraft must be separated from the space station assembly. Next,
the spacecraft must enter the return track through attitude adjustment,
braking, and deceleration. During the waiting period for reentry, the
propulsion cabin and return cabin of the spacecraft are separated, and
inertial taxiing is employed. The spacecraft then re-enters the
atmosphere, passing through the black barrier and undergoing testing.
Finally, the parachute is deployed, pushing back and landing. Following
this mission, modifications will be made to a Chinese space station.
Henceforth, China’s human spaceflight program will progress from
the vicinity of Earth to the region between Earth and Moon, with
astronauts remaining in orbit for extended periods (Martinez 2007).
Nevertheless, this remains a national endeavor. In addition to outlining
a space tourism blueprint for the Long March Rocket in 2024, China’s
space tourism initiative encompasses a commercial subsidiary, “CAS
Space,” established by the Chinese Academy of Sciences (CAS) to
develop rockets for commercial satellite launches (Li and Lazonick
2022). The program also intends to execute the space tourism plan by
2025 and commence receiving space tourists as early as 2024.
This book analyzes the successful instance of Inspiration 4 by Space
X, representing a significant advancement in the progression of human
exploration into space (Griko et al. 2022). In contrast to the well-
established foreign space commercialization milieu, China’s private
space enterprises were hindered by financial, technological, and human
resource limitations due to their late inception (Dangen 2006).
Consequently, in light of the amalgamation of defense and civilian
technologies, China is emulating the successful practices of foreign
commercial aviation enterprises. It is recommended that the
government provide investment guidance and incentivize social capital
involvement. The implementation of measures such as the creation of
school-enterprise partnerships to cultivate innovative talents could also
prove beneficial for the advancement of China’s private aerospace
enterprises. These initiatives ultimately contribute to China’s
developmental trajectory (Snell and Helliwell 2021). Additionally, the
current cost of space tourism is prohibitively expensive. To achieve the
democratization of space tourism, it is necessary to transfer technology
from the national team, and private space enterprises should
participate in developing the space industry to jointly overcome
technical challenges and achieve economies of scale (Weinzierl 2018).
This will create opportunities to reduce costs and make space tourism
accessible to both the general public and affluent individuals.

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Footnotes
1 Source https://​www.​economist.​com/​china/​2015/​01/​08/​ready-for-launch.
© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_3

3. Space Travelers
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

In 1960, the inaugural instance of space travel can be attributed to U.S.


Air Force Captain Joseph Kittinger’s participation in the “Man High”
project. Kittinger ascended to a height of 20 miles above the earth’s
surface via a balloon, penetrated the stratosphere, and subsequently
descended by jumping (Larsen et al. 2005). This event has since been
regarded as a significant milestone in the realm of commercial space
transportation (Toivonen 2021). In the subsequent year, Alan B.
Shepard accomplished his inaugural suborbital expedition aboard the
Mercury capsule, soaring to an elevation of 186 km above the
terrestrial plane, and subsequently executing a secure landing in the
Atlantic Ocean (Norberg and Steimle 2013). By 1963, the U.S. Air Force
had established the boundary of space to be situated at an altitude of
80 km above the earth’s surface, and any individual who surpassed this
designated threshold through aerial navigation would be bestowed
with the prestigious “United States Astronaut Badge” distinction
(Benjamin 2018). Subsequently, numerous entities and persons have
endeavored to attain this distinction, leading to the emergence of
commercial space transportation (Storey 2012). Notably, on April 28th,
2001, Dennis Tito procured and utilized an orbital travel pass to the
International Space Station, thereby becoming the inaugural civilian to
engage in commercial paid space travel.
Since the space travel of Dennis Tito in 2001, numerous studies
have been conducted by academic researchers, governments, public
organizations, and commercial enterprises to assess the viability of
space tourism as a potential investment and to determine its potential
public appeal (Autry and Huang 2014). Findings of a comprehensive
review of relevant studies conducted in Japan, the United States,
Canada, Germany, and the United Kingdom (Crouch 2001) indicate that
a significant proportion of respondents, ranging from 40 to 80%,
express interest or willingness to engage in space travel. The studies
primarily examine the factors that influence respondents’ participation
intentions, including nationality, gender (with women exhibiting 5–
10% lower interest levels than men), and age (with 80% of
respondents under the age of 20 and 45% over the age of 60) (Chang
and Chern 2020).
Approximately 10–20% of the participants expressed their
willingness to allocate their annual income toward engaging in space
exploration (Crouch et al. 2009). Findings of a Chinese study with a
sample size of 1,888 participants, comprising 1,106 individuals from
China and 782 from the United States, ranging in age from 18 to 66,
indicate that Chinese respondents, particularly the younger generation,
exhibit a greater interest in space tourism compared to their American
counterparts, with a score of 7.91 to 6.06 on a scale of 10 (Lisa Wan
2021). Furthermore, Chinese respondents expressed a higher level of
interest in space travel (8.08 vs. 5.51) and staying at a space hotel (8.24
vs. 5.76) than their American counterparts. The study also revealed that
Chinese respondents are willing to spend an average of US$1,606,310
on space tourism, while American respondents are willing to spend an
average of US$910,542. However, the high cost of space exploration
remains a significant barrier to its widespread adoption. Therefore, it is
crucial to identify the specific characteristics of the target passengers of
the current space tourism project and explore strategies to popularize
space tourism. In this instance, what strategies can be employed to
promote and increase the appeal of space tourism? Additionally, what
are the distinctive attributes of the intended clientele for the present
space tourism initiative? The information is presented in the
subsequent sections.

3.1 Popularization of Space Tourism


For several decades, nations across the globe have been engaged in the
exploration of the expansive realm of space. This endeavor can be
traced back to the 1960s when astronaut Yuri Gagarin piloted the
“Vostok 1” spacecraft and successfully entered Earth’s orbit (Gagarin
2006). Presently, the field of space science and technology has matured
significantly, and the utilization of advanced spacecraft, such as space
stations, has opened up a plethora of possibilities in the realm of
manned space exploration (Ma et al. 2022). In the realm of manned
spaceflight commercialization, particularly in the context of sub-orbital
space tourism, there remains a pervasive inquiry among the general
populace as to whether it is feasible for them to embark on a spacecraft
and witness the enigmatic wonders of space akin to professional
astronauts featured in news media (Gordon et al. 2013). It is
noteworthy, however, that the commercial suborbital space navigation
sector has been established, and numerous global commercial space
enterprises, including those in China, have initiated relevant ventures
(Webber 2013). The China Aerospace Science and Technology
Corporation, which operates the China Long March Rocket, has
announced its intention to launch the country’s inaugural civilian space
tourism program by 2024 (Pagkratis 2013). The program aims to
facilitate short-range suborbital flights, aiming to enable a single long-
distance space tour group comprising 10 to 20 individuals by 2035
(Ong and Liu 2022). The Chinese Academy of Sciences (CAS) has
established a commercial subsidiary, CAS Space, to execute China’s
civilian commercial space tourism initiative by 2025 (Sawaya 2004).
Despite the widespread discourse on the democratization of space
tourism, its practical implementation remains limited. Therefore, this
publication presents several commercial development strategies as a
reference point (Baiocchi and Welser IV 2015).

3.1.1 Diversification of Space Tourism


Expanding the space industry with diverse kinds of activities is
imperative to facilitate the widespread adoption of space tourism. In
addition to the conventional mode of space travel via spacecraft, it is
recommended that alternative options be developed to cater to the
varying economic capacities of potential consumers. The available
space tourism projects can be classified into the following categories.
(1) Fighter Ride

In 2017, the Russian Air Force offered a novel opportunity for the
general public to partake in a unique flight experience (Giles 2017). For
a fee of approximately $70,000, individuals were able to embark on a
supersonic flight aboard a MiG-29 fighter aircraft, which was piloted by
an active-duty Air Force pilot. The flight entailed navigating challenging
postures at an altitude of 15 km above the earth’s surface. It is worth
noting that such an endeavor typically necessitates a high level of
physical fitness from the participant.
(2) High Altitude Balloon

In a manner akin to the conventional tourist hot-air balloon venture,


the proposed undertaking involves the transportation of the participant
to the stratosphere, approximately 30 km above the earth’s surface, via
a large helium balloon, without inducing weightlessness (Spitzmiller
2017). The duration of the experience is estimated to be around two
hours, following which the participant descends to the ground via
paragliding. The intended commercial configuration entails a balloon
capable of accommodating eight passengers, including two pilots. The
cost of a single ticket is approximately $80,000, allowing the participant
to observe the curvature of the earth’s surface and the vast expanse of
space above (Lin 2022). This design has generated significant interest
among the general public, as it does not necessitate stringent physical
or financial prerequisites, thereby enabling a broader demographic to
partake in high-altitude tourism, surpassing the typical flying altitude.
(3) Zero Gravity Flight

The fundamental objective of this project is to enable the altered


aircraft to execute a horizontal parabolic trajectory at an elevation of
approximately 80 km above the Earth’s surface (Wheeler et al. 2019).
This maneuver will provide the participant with a sensation of
weightlessness akin to that experienced in outer space. It will also
allow them to experience the effects of gravity in various spatial
orientations. A notable illustration of this concept is Virgin Galactic’s
commercial manned space flight.
(4) Suborbital Space Navigation

The concept of sub-orbital navigation is distinct from that of orbital


navigation (Restrepo et al. 2018). Specifically, it involves the utilization
of a parabolic trajectory to ascend to an altitude of 100 km above the
Earth’s surface, followed by a brief period of sustained flight. In
contrast, orbital navigation entails a prolonged journey around the
planet. Notably, XCOR and Blue Origin, both American companies, offer
suborbital space travel services as an illustration of this mode of
transportation (Benjamin 2018).
(5) Low Earth Orbit Space Travel

The space tourism industry is primarily driven by the International


Space Station, where individuals can embark on spacecraft and travel to
the station located approximately 408 km above the Earth’s surface
(Aoki 2009). Once there, they have the opportunity to reside and
collaborate with other astronauts for a duration of over a week. During
their stay, they can observe the Earth’s beauty from the space station,
aid in astronautical tasks, and engage in scientific research endeavors.
Additionally, under the condition of ensuring safety, the experience may
even partake in an extravehicular spacewalk.
(6) Near-Earth Orbit Space Travel

The current state of near-Earth orbit space tourism involves two


types of voyages that circumnavigate the Moon, which is situated at a
distance of 384,400 km from Earth (Jedicke 2007). On September 18th,
2018, the CEO of SpaceX, Elon Musk, announced his company’s plan to
offer a travel experience around the Moon in 2023. All participants in
this venture have made a substantial deposit. The voyage involves using
a spacecraft to transport participants to the return orbit around the
back of the Moon. This allows them to observe the back of the Moon
and witness the Earth rising from the horizon of the Moon. However,
this business is still in the planning and design phase, and the
estimated cost is a staggering 100 million dollars per person. The
various modes of space travel experience mentioned above are
categorized based on the altitude above the Earth’s surface, which can
cater to the diverse requirements and conditions of travelers. The
primary objective is to offer individuals the chance to encounter and
contemplate humanity, society, and the planet during their voyages. Our
society is founded on experiential learning and is propelled by it. As
individuals continually seek novel escapades, the desire for fresh
experiences in space-related pursuits is rising. As a result, one of the
objectives of space tourism is to make this experience accessible to the
general public by reducing costs (Lockett et al. 2020). This can be
achieved by increasing the number of companies that are developing
technological platforms to cater to various market segments for
commercial purposes. This meticulous approach to market service will
generate an unending desire and aspiration for space activities among
ordinary people. As space tourism costs continue to decrease, it will
stimulate the demand for space tourism activities among diverse
groups and expand the multi-level target markets for space tourism
(Zurita 2014).

3.1.2 Managing Expenses and Providing Reasonably Priced


Options
As previously stated, the objective of facilitating more economical space
travel can be realized by diminishing the expenses associated with the
production and operation of rockets, encompassing their launch,
thereby significantly curtailing the cost of accessing space (Hilton et al.
2019). This, in turn, serves as the fundamental impetus for the
advancement of space industry technology in the realm of space
tourism. The costs of manufacturing and operating rockets, which
encompass launch technology, also entail substantial labor expenses
(Bushnell 2020). The reusable rocket developed by SpaceX has
significantly decreased the cost of rocket launches and manufacturing
expenses while also enhancing the automation of manufacturing and
operations (Jones 2018). This has reduced rocket launch costs from
USD 85,216/Kg in 1981 to USD 950/Kg in 2020. Additionally, SpaceX’s
advancements in 3D printing technology and robotics research have
allowed for the self-manufacturing of space tourism equipment, leading
to a decrease in labor and manufacturing costs (Straub 2017). With
over 70% of parts being self-manufactured, SpaceX can effectively
control the quality and cost of production, making it a formidable
competitor in the space tourism market (Crouch et al. 2009). The
vertical integration of enterprises has also allowed for economies of
scale, further reducing production costs and offering more affordable
prices.
Virgin Galactic has developed Spacecraft II and White Knight II,
capable of transporting a crew of two pilots and four tourists to an
altitude exceeding 80 km, albeit falling short of the internationally
recognized Ká rmá n line of 100 km (Seedhouse and Seedhouse 2015).
The company has already sold numerous advance tickets for space
travel, with prices more affordable than those offered by Orion Span,
which quotes nearly 10 million dollars (Toivonen 2020). Initially priced
at 250,000 dollars (approximately 1.75 million yuan), the ticket price
has since increased to 450,000 dollars following a bidding process. The
founder of the space tourism company, Richard Branson, has expressed
his desire to decrease the current ticket price of approximately 210,000
yuan to 30,000 dollars within a decade. Despite the potential
affordability of this reduced price, it remains prohibitively expensive
for many individuals who aspire to partake in space travel. The
expansion of the space tourism industry and the implementation of
technological advancements to reduce costs are necessary to create a
more accessible space tourism market, enabling a greater number of
individuals to experience the journey to space.
3.1.3 Collaboration Between Corporations and Academic
Institutions
The space tourism industry, akin to its terrestrial counterpart, falls
under the purview of the service sector and necessitates a significant
number of skilled service professionals (Kanas 2023). Given the
demanding nature of space tourism services, the requisite service
professionals must meet high standards of professional and physical
aptitude, thereby necessitating the cultivation of such professionals. To
this end, space tourism enterprises may collaborate with universities to
establish talent reserves, whereby students and researchers may
participate in scientific research missions and receive specialized
training in space service.
Simultaneously, educational institutions have the potential to
establish a scholarship program in collaboration with pertinent space
enterprise corporations aimed at promoting student involvement in the
research of pertinent scientific and technological advancements or
regulatory frameworks pertaining to space tourism (Davidian 2020).
This initiative would ultimately enhance the professional aptitude
necessary for the space tourism industry. Given the swift progress of
science and technology in the domestic aerospace sector, the
government has allocated increasing resources towards this domain.
For instance, several domestic universities in China, such as Beijing
University of Aeronautics and Astronautics, Harbin Institute of
Technology, Northwestern Polytechnical University, Beijing Institute of
Technology, National University of Defense Technology, and Nanjing
University of Aeronautics and Astronautics, have established relevant
space technology programs, which are further categorized into nine
majors, including aerospace engineering, aircraft design and
engineering, and aircraft manufacturing engineering. These universities
can collaborate with space tourism companies to recruit and train
talented individuals who can serve the company’s space tourism
business and fulfill their aspirations of exploring space. In addition to
students, researchers from diverse fields, including life science and
physics, can also benefit from such academic-industry partnerships. If
researchers require experimental settings in a space environment,
space tourism companies can allow them to conduct scientific
experiments in space.
3.1.4 Space Travel Cultural Festival
There is a global trend in tourism to integrate cultural elements,
resulting in a more culture-centric tourism industry (Bell and Parker
2009). This trend can also be observed in space tourism, where it can
be combined with local culture to create a unique space culture. Space
tourism is not only limited to the sky but also has surface-related
industries. For instance, an annual cultural festival celebrating space
travel can be a form of promoting space tourism. This festival can be
organized by leading commercial aerospace companies with the
support of the government. The annual event takes place at the
headquarters of the hosting company and is centered around the theme
of frontier development in space tourism. Attendees can explore
various forms of space tourism through exhibitions and engage in
simulated experiences using advanced technologies such as VR and AR
(Holt 2022). The cultural festival requires the purchase of tickets, which
may include a space tourism lottery (Attanasi et al. 2019). After the
festival, a grand lottery is held to select a number of lucky individuals
who will have the opportunity to experience the hosting company’s
space tourism services free of charge. As a result, all participants have
the chance to win a complimentary space travel experience. If an
exhibition of this nature were to be hosted in Macau, the gaming
industry could potentially organize a gaming competition during the
festival, with the grand prize being a free trip to space. This initiative
would allow the Macao SAR government to establish itself as a global
leisure center by promoting space tourism while also providing a
chance for legitimate gaming enterprises in Macau to participate in the
space tourism industry. Additionally, this proposal would increase the
accessibility of space travel to the general public, aligning with Macao’s
goal of diversifying its industries and popularizing space tourism.
Ultimately, this recommendation would serve a dual purpose of
supporting the diversified development of the local government and
promoting the space industry.

3.1.5 Development of Space Tourism in the Greater Bay


Area and the Guangdong-Macao In-Depth Cooperation
Zone in Hengqin
In 2018, the establishment of China’s Rocket Ltd. was officially
announced, followed by the proposal for space tourism programs
(Yazici and Tİwarİ 2021). The initial phase of the plan aims to execute
China’s inaugural civilian space tour project by 2024, to achieve short-
distance suborbital flight. The subsequent phase involves the
construction of a long-distance tour group capable of accommodating
10 to 20 individuals simultaneously before the year 2035 (Zanni et al.
2017). Based on the previously disclosed itinerary of China’s space
transportation system, the country’s reusable launch vehicle is
anticipated to be successfully developed by approximately 2025,
thereby making space travel a tangible reality (Wang 2021).
The Guangdong-Macao In-Depth Cooperation Zone in Hengqin,
commonly known as the “Cooperation Zone,” has emerged as a pivotal
area that facilitates the multifaceted growth of Macao’s economy (Tang
2022). By leveraging the land and human resources available in
Hengqin, Macao can diversify its economy. Furthermore, Macao can
capitalize on the policy benefits of the two cutting-edge industrial
zones, namely the private space launch base, and establish a Space
Tourism Research Institute to participate in the burgeoning space
tourism sector (Yu 2021). By utilizing advanced technological products
and services derived from scientific and technological research and
development within the space industry, Macau has the potential to
bolster its standing in the region and globally in the field of space
science and technology. To achieve this, it is imperative to allocate
resources towards the vigorous development and enhancement of the
space industry through investment, thereby promoting the growth of
an industrial-scale economy and supporting overall economic progress.
Additionally, there exists an opportunity to reduce the cost of the space
industry, which would reflect a decrease in consumer prices and
subsequently stimulate the further expansion of space tourism (Lamine
et al. 2021).

3.2 Target Passengers


The astronaut selection process in China was initiated with the
approval of the central government in September 1992 as part of the
manned spaceflight project (Crouch et al. 2009). The Central Military
Commission selected the Manned Space Engineering Command from
active pilots of the Air Force and the entire army through a rigorous
four-stage process consisting of pre-selection, primary selection, re-
selection, and re-examination (Marshburn et al. 2014). The selection
criteria included personal motivation, commitment to space travel, and
compatibility with the program. Prospective astronauts were required
to have a height between 160 and 172 cm, weigh between 55 and 70 kg,
and be between the ages of 25 and 35 (Sherwood 1996). Additionally,
they had to be fighter or fighter pilots with a total flight time of over
600 h, excellent flight performance with no accidents, and no
dependence on alcohol or tobacco (Spiller 2023). Finally, they had to
have a Class A qualification in their physical examinations over the past
three years to be eligible to apply for the astronaut program (Wang et
al. 2023). Although civilian space tourism may not be subject to the
same level of strictness as national missions, it can still serve as a point
of reference. The emergence of space tourism in 2021, spearheaded by
American private companies such as Virgin Galactic, Blue Origin, and
SpaceX, has demonstrated that space travelers are no longer exclusively
professional astronauts on national missions but also include extremely
wealthy individuals such as businessmen and spacecraft company
founders (Dileep and Pagliara 2023). However, the average civilian is
still unable to participate in space tourism due to the high financial
requirements and other physical barriers, such as the ability to
withstand multiple times the force of gravity, as elaborated below.

3.2.1 Physical Fitness


Although the official websites of SpaceX, Blue Origin, and Virgin
Galactic do not provide explicit information regarding the prerequisites
for space tourism participants, Inspiration 4, a mission conducted by
SpaceX, sheds light on the necessary qualifications (Kanas and Manzey
2008). The crew members of Inspiration 4 underwent six months of
physical training and received basic knowledge of space navigation
courses. Additionally, they underwent long-term simulation equipment
training to prepare for unforeseen circumstances during their space
mission. It is imperative for individuals of any gender, race, skin color,
and height to undergo physical training and basic knowledge testing of
space navigation to qualify for space tourism, provided they possess
good physical fitness (Dasgupta 2013). The subsequent sections will
elaborate on the health requirements in detail.

3.2.2 Financial Capacity


Based on the increasing pre-sale cost of space travel tickets, it can be
inferred that the buyers in the market have limited bargaining power
(Guerstera et al. 2018). For instance, XCOR initially sold 300 tickets for
its “Founder Astronaut Program” at a price of $100,000, which has now
risen to $150,000 as of January 2016. Similarly, Virgin Galactic sold
tickets for $200,000 in 2005, and by 2013, approximately 240 tickets
had been sold (Dole 2022). As of 2016, Virgin Galactic had received
deposits from over 700 customers, and the ticket price had increased to
$250,000. Following the successful completion of its first space tour in
2021, the bidding price on its official website reached $450,000. The
rising ticket prices of XCOR and Virgin Galactic indicate that the current
buyers have limited bargaining power and a low economic elasticity.
Furthermore, buyers must possess good economic conditions to afford
the selling price set by the sellers.
Crouch (2001) conducted a comparative analysis of research
findings from Japan, the United States, Canada, Germany, and Britain,
revealing high consistency in the results. The report indicates that
approximately 10%-20% of respondents were willing to spend a year’s
salary on space tourism. This suggests that the current target audience
for space travel consists of individuals who possess the financial means
to enjoy eight consecutive months of vacation, hold full-time
employment, and have a net asset increase of over $450,000 annually.
These individuals are the primary candidates for participation in Virgin
Galactic’s space journey, indicating that the target audience primarily
comprises affluent individuals. However, from an economic efficiency
standpoint, the space travel industry should strive to broaden its target
audience.

3.2.3 Potential Target Markets


In space tourism, it is crucial to identify the potential target market,
focusing on the civilian sector as a future direction (Johnson and Martin
2017). An important aspect of this identification process is the
distribution of demographic characteristics among potential customers,
including nationality, education, gender, and age (Reddy et al. 2012).
Additionally, it is essential to consider the risks and conveniences
associated with participating in space tourism projects, as well as the
cabin design, training intensity, and the acceptability of risk-taking
behaviors required during the early stages of the flight (Reddy et al.
2012). These analyses are critical in shaping the decisions made by
potential customers. Space tourism primarily appeals to individuals
who possess a keen interest in the space field or are drawn to
adventure-type tourism. Such individuals are often motivated by the
desire to explore new frontiers, experience the mysteries of space, and
witness the breathtaking view of the earth from the space station
rather than being driven by national missions or scientific research and
exploration.
Based on the preceding discourse and global studies conducted
(Crouch et al. 2009), the fundamental features of the populace, such as
age, gender, physical capacity, purchasing power, and other associated
traits will be discussed in the following section. At present, China’s
domestic tourist market is segmented by age groups. Given the
restricted eligibility criteria for space tourism, it is imperative to
establish a target market with a corresponding participation
mechanism.
(1) Aged 18–25 years old

This group possesses a notable benefit in their abundance of time


and energy, allowing for extensive physical and equipment training as
well as the acquisition of fundamental knowledge in space navigation to
prepare for potential exigencies. However, their youth and average
financial status may challenge affording costly tickets.
To underscore the benefits of a particular age group, it is suggested
that students hailing from mainland aerospace universities are better
suited as newcomers (Balsamello 2009). These institutions may
consider establishing a specialized college of space and astronautics
focusing on space flight research (Falco 2018). The curriculum would
encompass conventional subjects such as spacecraft, missile
technology, space propulsion, space energy, and emerging space flight
plans (Andrews and Siddiqi 2011). Aerospace college students can
excel by engaging in government-supported school-enterprise
cooperation projects, such as the Flying Project for College Students
(Aji and Khan 2015). Exceptional students would be afforded the
opportunity to fulfill their aspirations of space travel, provided that
there is a comprehensive aviation safety guarantee and insurance
mechanism in place. The government or educational institutions could
finance this type of initiative to enable outstanding college students to
participate in space tourism ventures. In addition to generating positive
publicity, this would also stimulate the inquisitiveness of young people.
It is posited that the younger generation will exhibit greater
enthusiasm toward studying space tourism and engage in space-related
business and professional training. This is attributed to the perceived
prospect of young individuals being able to work and vacation in space
tourism, thereby facilitating the commercialization and advancement of
space tourism in China. Additionally, this development is expected to
increase the involvement of economically disadvantaged youth in the
growth of the space tourism industry, thereby creating a potential
target market that is worthy of cultivation. Furthermore, this initiative
can potentially attract young individuals to participate in the space
economy and augment the pool of professional service talents following
the establishment of China’s space tourism industry.
(2) Aged 25–55 years old

This particular demographic possesses a certain level of assets and


financial capability to afford the expenses associated with space
tourism independently (Johnson and Martin 2017). Nevertheless, as
they age and become the primary economic support for their families,
their top priority shifts toward ensuring their safety and security.
Additionally, they may not have sufficient time to undergo early training
and education. Given these circumstances, individuals in this age group
who are most suitable for space-related activities are scientific
researchers specializing in aerospace-related fields, such as space
scientists or biologists. These researchers can personally conduct
research in space when necessary for their scientific projects, thereby
facilitating the execution of related space research endeavors.
Furthermore, individuals engaged in research possess a greater
understanding of space navigation compared to the general populace.
This undertaking has the potential to advance space exploration and
bolster the growth of space tourism. Nevertheless, it is imperative to
consider the judicious allocation of physical training and relevant
coursework for scientific researchers to ensure that the target market
of professional, scientific personnel for space travel is expanded
without impeding the progress of ongoing projects.
(3) Aged over 55 years old

The age segment that may partake in space travel within this age
comprises aerospace enthusiasts due to realizing their personal worth.
These individuals are employed full-time and have the luxury of an
uninterrupted eight-month vacation period. Their net worth
experiences an annual increase of $250,000, surpassing their
contemporaries’ physical well-being.
Irrespective of occupational categories, the target market for space
tourism can be established to experience the essence of life and self-
actualization. Individuals with limited financial resources can partake
in the space culture festival’s competitive events. The Macao Special
Administrative Region, renowned for its gambling industry, can
establish a prize pool similar to the “Dream of Space” initiative,
enabling each participant to compete for a special prize for space travel
(Luke 2013). The prize pool can provide the winners with the means to
afford space travel tickets, thereby fulfilling their dream of space travel.
However, unsuccessful participants retain their eligibility to visit the
space base and participate in the next lottery round. The target market
is boundless, and the chances of winning the prize persist. The
development of this target market necessitates participation in the
competition bureau’s design.
In a word, space tourism is a commercial activity developed for
tourists with demand (Chang 2015). The supply side of this industry is
supported by a well-established launch and operation mechanism that
is primarily utilized for national defense, scientific research, and other
commercial activities, including communication satellites (Oltrogge and
Christensen 2020). The emergence of a new industry in this domain is
contingent upon attaining safety, risk management, and market
capacity in manned space technology. This industry has the potential to
generate economic value and provide opportunities for human survival
and social welfare.

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© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_4

4. Space Travel Agency


Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

In April of 2001, U.S. Space Adventures facilitated a voyage for wealthy


businessman Dennis Tito aboard a Soviet spacecraft to the
International Space Station (Giacalone 2013). The following year, the
company acted as an intermediary for South African businessman Mark
Shuttleworth to fulfill his aspiration of space travel (Seo 2013).
Founded in Virginia by Eric C. Anderson in 1998, U.S. Space Adventures
offers a range of products, including zero-gravity flight, orbital space
flight, astronaut training, spacewalk training, and ongoing space
tourism projects (Kuhn 2007). It is recognized as the world's first space
tourism agency. In China, Miranda Travel, Ltd. in Hong Kong has
demonstrated an understanding of the potential for future
development in space tourism and has taken the lead. Virgin Galactic
has appointed Miranda Travel, Ltd. as the exclusive space tourism agent
in Hong Kong, Taiwan, Singapore, Malaysia, Thailand, The Philippines,
and Indonesia (Leung et al. 2021). Currently, the space travel agency
functions solely as an intermediary for tourists seeking to explore the
uncharted territories of the galaxy (Kouveliotou et al. 2014). However,
with the maturation of the business, there exists potential for
diversified service development, which could lead to an increase in
business opportunities. Given the distinct differences between space
tourism and traditional tourism on Earth, the nature of the space travel
agency's business will also differ significantly. Therefore, it is
imperative to consider the types of intermediary services that can be
offered in the forthcoming space intermediary business, as well as the
intermediary role that can be assumed to promote equilibrium
between supply and demand.
The space travel agency of the future may differ from its surface-
based counterpart, as it will possess specialized knowledge and
expertise in the space industry chain (He and Bai 2021). Through
strategic alliances and industry relationships, it may also facilitate
space tourism. Axiom Space, Inc., a private space infrastructure
development company headquartered in Houston, Texas, was
established in 2016 and is led by former NASA employees, including a
former NASA director. In April 2022, the company successfully
facilitated a commercial mission to the international space station,
utilizing SpaceX's manned Dragon Boat endeavor (Chemin 2022). This
resulted in completing the first-ever space tourism project involving
four civilian members, which was not only an intermediary service.
The company aims to establish and manage the world's inaugural
commercial space station by 2024. Space travel offers an unparalleled
experience, which is highly sought after by individuals. However, the
cost of suborbital flight tourism is exorbitant due to the high expenses
associated with space flight, aircraft manufacturing, recycling, and
maintenance (Orme 2017). These factors are reflected in ticket prices,
which are beyond the financial means of the general public. To make
space tourism more accessible, the primary task is reducing costs and
lowering ticket prices. In addition to the cost reduction strategies
outlined in previous chapters, increasing the number of suppliers and
facilitating matchmaking between supply and demand through
intermediaries can promote market transactions and enable more
individuals to experience space tourism (Von der Dunk 2011). Space
tourism is not solely a commercial or market issue but also an
inevitable trend that fosters the advancement of human society.
In the foreseeable future, there exists the potential for humanity to
redefine its perception of the planet and establish a new sense of
purpose (Blom and Mauno 2021). In the distant future, the migration of
humans to other star systems could serve as a lasting testament to the
continuation of life in the universe. To facilitate the development of this
meaningful tourism market, it is imperative to explore methods of
reducing the cost of space travel while maintaining the requisite safety
standards, thereby enabling a greater number of individuals with
aspirations to participate in space travel initiatives. This chapter
outlines the potential contributions of space agencies and travel
companies, including their service offerings and opportunities for
commercial collaboration. It is anticipated that the involvement of
space tourism agencies will bolster the supply and demand for space
travel while simultaneously expanding the economic potential of the
space tourism industry.

4.1 The Scope and Function of Space Travel


Agencies
As a travel agency specializing in space tourism, it is imperative to
establish connections with manned space companies and develop
effective marketing channels to attract potential customers (Smith
2000). The target market for space tourism can be segmented into
individual travelers and small groups, which may comprise of
commercial or scientific organizations. To maximize customer
satisfaction and achieve reasonable profits, a pricing and sales
mechanism should be established based on a sound pricing strategy.
Space travel agencies, such as space exploration companies or
intermediaries like Axiom Space, Inc., can offer a range of services to
space travelers, including space suits, training, food, and other space
tourism experiences, in addition to space flight or travel to space
stations (Robinson and Mazzucato 2019).

4.1.1 Professional Spacesuits Business


The utilization of space suits is imperative for space exploration due to
the harmful effects of radiation on the human body (Chancellor et al.
2014). Despite radiation protection in spaceships, passengers are still
required to wear space suits for additional safeguarding. This presents
a potential diversified service for intermediary businesses. For
instance, SpaceX's recently designed space suit not only provides
radiation protection but also boasts an aesthetically pleasing
appearance, which deviates from the conventional bulky design of the
past. The suit's pure white integrated design, complemented by black
and gray lines, exudes a scientific, technological, and advanced aura. It
offers astronauts a lightweight and practical dressing experience while
mitigating radiation risks and potential pressure. The spacesuit
components are designed with advanced technology to ensure optimal
functionality and safety.
(1) The helmet is produced using 3D printing techniques and features
an integrated valve.

(2) The white section of the suit is constructed from a reinforced glass
fiber material that exhibits resistance to high temperatures, fire,
acid, and alkali.

(3) The glove has data sensors that enable the wearer to control the
spaceship by touching the screen while also providing protection
against fire and electricity.

(4) The spacesuit has a single contact life supply system on the legs,
and the aerospace boots are designed to prevent skidding, fire,
and electricity.

4.1.2 Training Service


Significant disparities exist between space travel and terrestrial travel,
extending beyond economic considerations (Profitiliotis and Loizidou
2019). The physical and mental thresholds that must be surpassed are
also of paramount importance. Prior to embarking on a space journey,
preparatory training is necessary, including physical and professional
training. While humans are accustomed to the surface environment,
they may struggle to adapt to the harsh conditions of space. To mitigate
the adverse effects of the space environment on humans, spacecraft are
designed accordingly. For instance, passengers require specialized
training to withstand the high gravity experienced during takeoff and
landing (Anderson and Piven 2005). Before undertaking an official
space flight, passengers must undergo several days of physical and
mental training to acclimate to the conditions of space travel (Sgobba et
al. 2018). Intermediary services facilitate this adaptation process,
allowing participants to familiarize themselves with the procedures
and complete simulated space flights alongside astronauts using
specialized equipment. The general training curriculum includes:
(1) Cardiopulmonary function training

In the absence of gravity, the human body experiences an increase


in blood flow to the head, leading to a false perception of excess blood
volume by the brain (Williams et al. 2009). Consequently, the brain
signals the body to decrease blood production, resulting in a reduction
of up to 22% in blood volume after a period of 2–3 days. This decrease
in blood volume alleviates the workload on the heart but may also lead
to degeneration of the heart muscles. Aerobic exercise has been shown
to enhance cardiopulmonary function to counteract this effect
effectively. Popular forms of aerobic exercise include swimming,
running, rope skipping, and High Intensity Interval Training (HIIT).
(2) Muscle strength training

In a state of weightlessness, the body experiences a reduction in the


load borne by its various components, leading to a gradual atrophy of
the musculature (Baker et al. 2019). Specifically, the calf and spinal
muscles may experience a loss of up to 20% of their weight. In the
context of space travel, this process occurs at a rate of 5% per week.
Exercises such as weightlifting, push-ups, stair climbing, and squats are
recommended to maintain muscle strength to counteract this effect.
(3) Bone strengthening training

Due to the rapid degeneration of muscular tissue, bones are also


susceptible to fragility. In the context of space travel, bones experience
a monthly weight loss of 1%, with projections indicating that up to 40–
60% of their weight may eventually be lost (Sgobba et al. 2018).
Consequently, astronauts who have spent extended periods in space
require stretcher transportation upon returning to Earth. Engaging in
weight-bearing exercises can enhance muscular strength and increase
bone density. Activities such as hiking, jogging, and Tai Chi, which
involve relatively low levels of physical exertion, can improve muscle
coordination and distribute stress evenly across bones, thereby
promoting bone strengthening.
(4) Balance training

The equilibrium of the human body is maintained by the interplay


of various components, including the inner ear, eyes, muscles, joints,
and brain, which work in tandem to facilitate continuous position
detection, feedback, and adjustment. In the absence of gravity, the fluid
in the body moves unrestrictedly, leading to a sensation of nausea
among astronauts (Williams et al. 2009). To mitigate this effect, it is
essential to undergo appropriate balance training, including yoga and
lower limb balance exercises, such as standing on one foot.

4.1.3 Catering Business


The distinction between space tourism and Earthbound tourism is vast,
encompassing factors such as space food, weightlessness, confined
spaces, and specialized equipment for food storage and preparation
(Baker et al. 2019). Space food is a crucial element for survival in space,
as the current technical conditions do not allow for the same variety of
cooking methods as on Earth (Tavella et al. 2012). To address this issue,
space travel agencies may consider partnering with aviation kitchen
businesses to improve the storage and taste of space food while also
ensuring that it meets the necessary dietary requirements for space
travel. Currently, international astronauts consume staple foods such as
dry rice and curry rice, which are packaged in silver-gray bags similar
in size to a regular book (Kanas et al. 2008). Additionally,
supplementary foods such as bread, peanuts, tuna, pudding, apples,
carrots, chicken, meat, noodles, soup, and vegetables are preserved
using specialized procedures such as freezing, drying, and evacuation.
Until space tourism food can be produced on a larger scale, appropriate
extreme sports marketing channels may be utilized to increase the
sales volume of space food and maintain operations.
To supply edible fruits such as strawberries, apples, bananas, and
peaches in space, travel agencies can act as intermediaries between
food research institutions. These fruits will be dehydrated at low
temperatures and processed into freeze-dried fruits for space
preservation. Despite being in a “dried fruit” form, the taste and color of
the fruits remain satisfactory. The selection of beverages will include
modern and trendy options such as iced black tea and green tea. All
food items will be stored in refrigerators designed for space food. As of
the beginning of 2021, Haier food refrigerators have been transported
to space along with the core module of Tianhe to provide food
preservation services for astronauts (Ao 2018). The food cooler has
been designed to ensure a six-month cold chain storage guarantee for
space food, thereby providing fresh food storage for astronauts during
their orbit. The refrigerator has a capacity of 10 L and maintains a
temperature range of 2 to 8 degrees Celsius above zero. In addition to
its primary function, the equipment can also be utilized by travel
agencies to research the storage requirements of space tourists and
facilitate their consumption of space food during their travel
experience.

4.1.4 Space Hotel


In a manner akin to terrestrial travel agencies, intermediary services
for space travel will encompass space hotels (Obrist et al. 2019). The
inaugural space hotel, christened “Voyager” (Voyager Station), is
scheduled to commence construction in low-Earth orbit in 2025 and
open to the public in 2027. The hotel's design will resemble a Ferris
wheel, offering a range of amenities such as a themed restaurant,
cinema, spa, library, gym, and accommodation for up to 400 individuals.
The Space Hotel will complete an orbit around the Earth every 90 min.
To ensure that guests have comfortable dining, sleeping, showering,
and washing experience, the hotel will endeavor to generate artificial
gravity using centrifugal force for the first time.
Furthermore, the Space Travel Agency intends to establish a close
collaboration with the Space Hotel to offer personalized and
satisfactory accommodation services to its clients. It is worth noting
that various foreign-listed companies have already conducted
successful space tours, with Blue Origin recently announcing its
“Orbital Reef” project for the Space Hotel, which is expected to
commence operations between 2025 and 2030 (Barry and Alfaro
2022). Through the intermediary services of the Space Travel Agency,
passengers will not only have the opportunity to travel in low-Earth
orbit briefly, but also enjoy several days of accommodation at the Space
Hotel. By planning these services in advance, a more comfortable and
awe-inspiring travel experience can be provided, surpassing the
current space store accommodations and resembling the type of space
lodging depicted in popular films.

4.2 Planning Space Travel Itineraries


The challenge of facilitating space tourism lies in the limited elasticity
of the current supply and demand (Obrist et al. 2019). The supplier's
capacity is restricted, and the demander's bargaining power is naturally
limited, resulting in an economic balance that is not a general
equilibrium but a non-general equilibrium where the supplier can
dictate terms. Establishing a business niche among the limited
suppliers and promoting purchase decision-making among the limited
demanders is daunting. Despite these challenges, investing in space
tourism is worthwhile. Based on the current scenario, a single
successful space tourism project completed by an American space
exploration company can sustain the company for a year. Furthermore,
the intermediary transactions can yield substantial profits if multiple
successful space tourism projects are completed in a year.
The primary objective of space itinerary planning is to provide
tourists with two fundamental experiences (Schulz et al. 2022). Firstly,
to enable them to appreciate the beauty of the Earth from a
commanding position and observe the bright cosmic starry sky under
vacuum conditions, which can lead to a distinct understanding of the
origin of human beings and the significance of life. Secondly, to allow
them to experience weightlessness in space, where they can float freely
in the spacecraft and lift weights with ease, an unattainable experience
on the Earth's surface. The space economy has evolved from scientific
space exploration for near-orbit space travel, and the tourism service-
oriented industry is on the verge of emerging. Similar to the aviation
industry's development history, human travel will progress from
different destinations to different stars, and space intermediaries will
contribute to the growth of the space economy and the opening of
frontier and remote land for human beings. The space tourism
intermediary can drive economies of scale, reduce costs, and selling
prices (Chang 2017).
Currently, the expense of human space exploration remains
exorbitant across all nations (Kua et al. 2021). Despite SpaceX's
achievement in reducing launch costs to 60 million dollars, it still
surpasses the cost of intercontinental air travel. While advancements in
space technology have led to a decline in the cost of suborbital space
tourism, it remains unaffordable for the general populace (Toivonen
2022). It is anticipated that the participation of space agencies in the
industry will facilitate the prompt achievement of civilian space
tourism (May 2021). Currently, there exist four distinct categories of
accomplished space tourism excursions, namely: aircraft parabolic
flight, high-altitude flight in proximity to space, suborbital flight, and
orbital flight (Reddy et al. 2012). The augmentation of space travel
agencies can potentially generate a greater number of prospects for
space exploration (Table 4.1).
Table 4.1 Modes of Space tourism

Mode Parabolic Near-space flight Suborbital flight Orbital flight


flight
Tool Russian il76 us Russian MIG 25, 31 Spaceship 2 “Alliance”
KC135 fighters spacecraft and
weightless international space
aircraft station
Height About 1.2 km About 24 km More than 100 km 80 ~ 1000 km
Time 25 s A few minutes Minutes to tens of 3 ~ 5 days
minutes
Mode Parabolic Near-space flight Suborbital flight Orbital flight
flight
Experience Weightlessness Weightlessness. One Weightlessness. One Weightlessness and
can observe the can appreciate the vacuum. One can
curvature of the magnificence of the gaze upon the
Earth and the earth by observing its radiant cosmos and
obscurity of the sky curved surface appreciate the
overhead spanning over splendor of our
thousands of planet
kilometers
Expense US$5,000 US$10,000 (64,000 US$200,000 ~ US$20 million (0.13
(32,000 yuan) yuan) 250,000 (1.3 ~ 1.6 billion yuan)
million yuan)

4.3 Intermediary Participation


The question of when space tourism will become accessible to the
general public remains a topic of interest (Ludwig and Taylor 2016).
Currently, the primary obstacles to popularizing space tourism are the
high costs and rigorous training required before space travel (Prideaux
and Singer 2005). The current consumer base is limited to high-income
individuals who possess the necessary physical qualifications and time
to undertake such an endeavor (Lappas 2006). Consequently, space
tourism is not a viable option for most individuals. To address this
issue, the key objective is to develop a strategy that enables civilians to
fund space travel and fulfill their dream of experiencing space
(Goehlich 2014). One potential approach is to offer a chance for lucky
individuals to participate in space travel through a lottery or game
competition, thereby providing an opportunity for those who cannot
afford the high costs of space tourism.
The sports lottery is a suitable recommendation due to its high level
of participation. In 2020, the lottery tickets issued and sold across the
nation amounted to 333.951 billion yuan. Welfare institutions
accounted for 144.488 billion yuan of lottery ticket sales, while sports
lottery institutions accounted for 189.463 billion yuan. This resulted in
the generation of 96.781 billion yuan of public welfare funds (Zhang et
al. 2021). Travel agencies have the potential to collaborate with lottery
sales organizations to organize various forms of public welfare
activities related to space tourism (Goehlich 2008). This approach can
ensure equitable access to such opportunities and generate substantial
financial resources for subsidized public welfare initiatives. As a result,
individuals who possess a keen interest in space tourism can realize
their aspirations through these initiatives.
Intermediaries have the potential to expand the business scope and
space-related industries by implementing lottery designs for
enterprises interested in participating in space tourism projects,
thereby increasing the supply and demand of space tourism. The lottery
system offers several advantages, including its affordability, versatility
in game types, and potential for generating significant funds. However,
the development of space tourism lottery programs currently faces
challenges related to product design and funding sources (Kothari and
Webber 2010). Therefore, encouraging resident participation in the
lottery can enhance the prospects of realizing space tourism, expand
opportunities for civilian involvement in space tourism, and provide
funding for space tourism projects with limited resources.
The lottery sales cooperation department of the space agency has
proposed implementing a “space lottery” project (Vovchanska and
Ivanova 2022). This project will maintain the current lottery functions
and games while modifying the prize pool to correspond with the four
existing space tourism projects: parabolic flight of aircraft, high-altitude
flight close to space, suborbital flight, and orbital flight. The “Space
Lottery” will enable individuals to fulfill their aspirations of space
tourism by purchasing lottery tickets. The funds generated from this
project will primarily support civilian space travel and public welfare
activities associated with space research and projects. For instance,
intermediaries can arrange for exceptional domestic aerospace
students to visit space research bases and participate in space.
Regarding suitability for space lottery tickets, not all types of lottery
tickets are cost-effective (Ferreira et al. 2009). Scratch lottery tickets
are more appropriate for this purpose due to their pre-printed nature,
allowing immediate redemption upon purchase without waiting for a
lottery drawing (Zavattaro and Fay 2017). This type of lottery is
preferred by the majority of players, resulting in higher sales volumes.
The probability of winning in the scratch lottery is determined by the
return rate, which is the proportion of the total number of lottery
tickets sold. A higher lottery distribution rate leads to a higher
probability of winning. The reward rate of the scratch lottery in China is
65%, with the highest prize being 120,000 yuan for a 2-yuan scratch
game and 1 million yuan for a 20 yuan scratch game. These winnings
can cover the costs of parabolic and high-altitude flights. Additionally,
the public welfare fund raised by the space lottery can be utilized to
develop various space projects, thereby promoting the
commercialization of China's space industry (Carmona 2014).

4.4 Space Tourism Lottery


The accessibility of space tourism should not be limited to the wealthy
but instead extended to the general public to align with the
government's objective of promoting common prosperity. While the
development of cost-effective technology, such as reusable launch
vehicles, is essential, additional measures can be implemented to
increase participation in space travel through Game Theory. Successful
space tourism in the United States is limited to the interaction between
spacecraft companies and affluent tourists, resulting in economic
inefficiencies in production, distribution, and consumption.
To enhance the economic efficiency of the space commodity market,
it is imperative to broaden the range of participants in the supply–
demand commercial chain. This entails not only reducing the technical
costs associated with the supply side of the space commercial chain but
also gradually incorporating additional participants on the demand
side to promote industry efficiency. To achieve this objective,
intermediaries must be enlisted to mediate supply and demand. Game
theory suggests that space tourism competition could expand the pool
of participants and consumers of this commodity beyond the original
supply and demand (Callon 2021). This concept would include the
extremely wealthy and non-extremely wealthy individuals, with
competition intermediaries potentially being space business chain
companies or unrelated enterprises. The proposed competition design
is as follows:
The design of the space tourism lottery is illustrated in Fig. 4.1,
where the coordinates (1,1) denote the supply and demand sides of the
existing market, and the transaction price is akin to option pricing in
the financial market. A slight deviation between the agreed
performance price at the outset of the period and the actual execution
price can be anticipated. The coordinates (2,0) or (0,2) represent a
novel market, wherein non-affluent individuals can participate through
a lottery by raising funds. This lottery can be envisaged as being
organized by a space company or a Macao enterprise, and the winner
(designated by 2) can be a non-affluent consumer who can experience
space tourism with the aid of public capital. Alternatively, an enterprise
can emerge as the winner and be rewarded with the lottery.

Fig. 4.1 Innovative lottery of space tourism


The proposed lottery framework has the potential to attract a larger
pool of participants and augment the availability of secondary
resources for the advancement of the industry. Specifically, the
emergence of the space tourism market has broadened the scope of
participants, including those who are not considered extremely
affluent, in the lottery. This lottery presents an opportunity for non-
affluent individuals to partake in space tourism while enabling large
space technology enterprises and non-affiliated entities to compete to
design innovative space tourism solutions. This, in turn, can stimulate
the supply and demand of the space tourism value chain. By
incorporating space tourism and its related services into the lottery
design, there is a potential to expedite the development of the space
industry with space tourism as the focal point, and to expand the
economic benefits of a space tourism industry, ultimately achieving
Chinese-style space tourism. In addition to promoting industrial
development and economic growth, including non-affluent individuals
in space travel can enhance their standard of living while showcasing
the practical application of science.
By establishing a mechanism for space travel intermediaries, more
individuals can become involved in space tourism, which could
positively affect China's economy and the advancement of aerospace
technology. Several recommendations have been proposed to enhance
the space industry's development. Firstly, it is important to ensure
technological progress and cost reduction on the supply side. Secondly,
the general public should be educated about space travel and allowed
to participate in it. Thirdly, similar to traditional tourism, the operation
and diversified development of space intermediaries will promote the
growth of the space economy. Ultimately, the development of
technology will positively impact the market, and the involvement of
space intermediaries could lead to more affordable pricing and
increased motivation for public participation, thereby facilitating the
rapid development of both science and technology and the economy.

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© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_5

5. Space Hotels
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

The construction and operation of a high-end space hotel, known as


“Voyager Station,” is scheduled to commence in 2026 and be fully
operational in 2027 (Harrison and Garretson 2023). The hotel has a
capacity to accommodate a maximum of 400 guests, and reportedly, an
individual’s stay of three days and two nights would amount to five
million US dollars. In October 2021, Blue Origin announced the
development of a commercial space station named “Orbital Reef” to
provide a “mixed-use business park” for research, industry, and
commerce, thereby enhancing the multifunctional development of
space hotels. Nevertheless, travelers’ decisions for space tourism may
be influenced by the physical adaptation complexities arising from the
significant discrepancies in space environments. The success of space
tourism in 2021 heralds the advent of the commercial space travel era.
Some companies have started designing space hotels to ensure comfort
during space travel and encourage more tourists to explore space. The
existence of space hotels can meet the demand for space environment
lodging and enable travelers to appreciate the cosmic scenery readily
while outside the Earth’s atmosphere. Space hotels can provide a
captivating experience for long-term terrestrial inhabitants and become
the relay stations for human interstellar travels.
Space hotel designers have started analyzing and designing space
hotels from different perspectives, including the orbital position, type,
and equipment for space hotels based on basic human needs and
experiential considerations (Strickland 2012). The ultimate objective is
to provide guests with a comfortable and complete space travel
experience, enabling them to observe and comprehend the universe,
thereby encountering different life perspectives. Therefore, the
development of space hotels is imperative. Research, planning, design,
and implementation of construction plans for space hotels should
expand the scope of services beyond the Earth’s surface.

5.1 The Concept of Space Hotel


The concept of space hotels has been in existence for a long time, with
Hilton proposing the design for a space hotel before the Apollo Moon
landing in 1967. The two most popular design concepts for space hotels
are the inflatable space hotel and the space station-style hotel (Dileep
and Pagliara 2023).
The “Transhab” project, an inflatable manned spacecraft cabin, was
developed by NASA in 1997 to construct the International Space
Station. This innovative design involved a small volume during launch,
which would subsequently expand upon reaching space, thus reducing
the cost of the space cabin. However, a shortage of funding impeded the
“Transhab” project’s progress, and it was canceled in 2000 despite its
significant achievements. In October 2005, Bigelow Aerospace started
constructing the first experimental module of a space hotel, named
“Genesis I,” contrasting the spacecraft’s hard metal shell with an
inflatable, soft-shell modular design that would help save rocket launch
costs. “Genesis I” was successfully launched on July 12, 2006. Later, on
June 29, 2007, a Russian heavy-lift rocket launched Bigelow
Aerospace’s second space hotel module, “Genesis II,” into its designated
orbit. According to Bigelow’s plans, the first crewed space capsule was
scheduled for launch in 2012. It would have had an internal space of
330 cubic meters with broad windows to offer a stunning view of the
Earth and space, but the project was abandoned due to insufficient
funding from NASA (Pyle 2019).
The space station-style hotel is designed to resemble the current
infrastructure of a space station. As a leisure facility, it aims to provide a
more comfortable experience, unlike the harsh living conditions
typically associated with the International Space Station. Space hotels
aim to provide a comfortable living environment (May 2021). At the
same time, astronauts aboard the International Space Station usually
consume frozen or dehydrated foods and rely solely on sponge baths to
maintain cleanliness since they are away from Earth. For space hotel
customers, meals should be prepared on Earth and warmed in a
microwave for consumption, offering a more humane experience. Space
hotels will be equipped with refrigerators, making it easy for travelers
to enjoy fruit juices, mineral water, iced tea, and other cold beverages.
However, alcohol consumption is strictly prohibited to prevent
potential dangers. A bathroom is essential to any space hotel design,
and for safety reasons, the bathroom is sealed to prevent the propelling
of water droplets in a zero-gravity environment. Moreover, guests can
choose to sleep upright or lie down since the lack of gravity negates the
need for a traditional bed. Due to the complete enclosure of this living
space, an air filtration system will remove any unpleasant odors or
bacteria, ensuring clean, fresh air for guests. The primary difference
between a space hotel and a space station is the hotel’s interior design,
which should evoke a hotel-style ambiance. A space hotel will offer a
more enjoyable and comfortable experience than previous sightseeing
trips to the International Space Station. Guests will have the option of
vertical and horizontal beds, complete with fully enclosed shower
facilities, binoculars for stargazing, fine dining options, a cinema, and a
bar. This will provide tourists with an extraordinary experience that is
distinct from traditional earthbound tourism (Byers and Boley 2023).
5.2 Design History of Space Hotel
Many convenient facilities required by space tourists are incorporated
into the design of the space hotel, such as comfortable living quarters
and state-of-the-art security equipment. Private cabins and public
observation decks will be provided for visitors to tour facilities, science
labs, and space greenhouses. Additionally, a high-speed information
dissemination system will be equipped in the hotel to enable visitors to
share their feelings and experiences with their loved ones and friends
on the ground. To ensure the safety of space travelers, the space hotel
will be equipped with state-of-the-art security and early warning
systems to prevent physical and mental harm that may occur in the
space environment (Humphries and Barez 2006).
The following space hotel designs emerged after Dennis Tito
completed his space tourism trip in 2001 (Dewily and Michael 2021).
Due to technological and financial limitations, many of these space
hotel designs have not yet been implemented; nevertheless, they can
serve as a reference for future short-term planning. The types of
proposed space hotel designs that have emerged include:

5.2.1 Galactic Suite Hotel


The Galactic Suite Hotel was originally scheduled to be completed in
2012, with the designer being Xavier Claramunt. The estimated cost per
person for a three-day stay was 4 million US dollars (Baird 2008). The
hotel includes 22 rooms, each with an area of 28 square meters.
Designing a space hotel has long been an amateur hobby for former
aerospace engineer Claramunt, an enthusiast who decided to turn this
scientific concept into reality. It is reported that the construction of this
space hotel will cost 3 billion US dollars. The company regards the
“Galactic Suite” as the first step in its long-term space program. The
company intended to apply the experience and scientific technology
gained during the construction process of the “Galactic Suite” to its
future entry into Mars colonization and the establishment of human
colonies on Mars. The company has already begun implementing the
construction plan for the space hotel and is consulting with private
investors from Japan, the United States, and the United Arab Emirates.
According to the designers at the Barcelona-based company, the
“Galactic Suite” was designed to be the most expensive hotel in the
galaxy, consisting of separate capsules that serve as reception areas,
bars, restaurants, and other spaces. Guests can admire the beauty of the
universe without leaving the hotel, and due to its orbital flight, the hotel
orbits the Earth once every 80 min, affording up to 15 sunrises per day.
In addition, because of the weightless environment, guests can
experience the incredibly fluffy foam space bath and can crawl slowly,
like Spiderman, on the “cocoon”-shaped suite walls, wearing Velcro
clothing (Marr 2021). Xavier Claramunt, the president of the “Galactic
Suite” company, stated that the cocoon-style suites have three
bedrooms and look like capsule models. Each suite must be sent into
space separately by rocket, and providing space tourism services to
guests is not an easy task. The biggest challenge faced by guests in the
zero-gravity environment within the hotel is bathing. The company has
found a solution to this problem by designing a specially-made water-
bubble bathroom for guests. They can enjoy the beautiful space through
portholes and experience the unique sense of weightlessness that can
only be experienced during space travel, unlike any travel on the
Earth's surface.
Galactic Suite clarified that this fee not only incorporates a three-
night extraordinary space-living experience but also an eight-week
simulated space environment training in a “James Bond”-style space
camp located on a tropical island. Claramunt stated: “We estimate that
40,000 people in the world have the capability to stay at Galactic Suite
Hotel, but whether they are willing to pay for such a space journey
remains unknown (Marr 2021).” While 4 million dollars may seem like
an enormous amount for a holiday, it is insignificant compared to the
newborn space tourism industry. Currently, the prevailing belief in the
hotel management industry is that the cost of space travel will not
decrease in the short term.
Claramunt explained that when we normally talk about space travel,
we naturally associate it with danger. To ensure the safety of guests
during their stay in space, we will use space shuttles to travel to the
Galactic Suite for maintenance and monitoring regularly. Only in this
way can guests know that they can safely return to Earth (Claramunt et
al. 1998). At a time when people are generally concerned about climate
change, the Galactic Suite company has not yet formulated a plan to
offset the pollution caused by the spacecraft that sends six guests into
space each time. The company’s spokesperson stated that although
current technology has not yet solved such pollution issues, they
sincerely hope that guests will develop a greater appreciation for and
commitment to protecting their human habitat, Earth, after viewing it
from a distance in space.

5.2.2 Inflatable Space Hotel


Projected to be completed in 2015, the inflatable space hotel was
designed by Robert Bigelow, with an anticipated average individual
expenditure of $ 1 million per night (Seedhouse and Seedhouse 2015b).
Notably, the hotel has a volume of 1500 cubic meters, weighs 100
metric tons, has a diameter of 30 m, and orbits at 515 km above the
Earth’s surface. Unlike the aluminum space modules used in
constructing the International Space Station, the hotel module
comprises the primary space. It has an inflatable shell with a hard
exterior made of materials such as fiber. The hotel consists of separable
pod modules resembling a string of sausages, including a hotel, a
shopping center, and a small factory producing microgravity. The
budget for constructing Bigelow’s inflatable space hotel was $500
million, of which $75 million was self-invested and involved recruiting
retired space engineers from NASA and Lockheed Martin Corporation.
Why are inflatable space habitats so important? According to Jason
Crusan, Director of the Advanced Exploration Systems division at NASA,
when humans embark on missions to Mars lasting 1,000 or 1,100 days,
it may be necessary to have a habitat of 300 cubic meters in size for
living and food storage purposes, thus necessitating significant space
requirements. Current space habitats use metallic structures, but the
size of these metallic space habitats is also restricted due to the limited
launch capabilities of rockets. As a result, only deployable inflatable
space habitats may meet the requirements of future deep space
exploration. Although inflatable space habitats inflate via gas
expansion, their more precise name is “deployable space habitats.” The
difference between the two is similar to that between a balloon and a
tent: a balloon inflates and deflates without any structural support,
while a tent, which can be folded, retains its supporting structure and
can be set up with doors and windows for people to enter and exit. The
“Bigelow Expandable Activity Module” that has already been launched
weighs 1.4 tons and has original dimensions of 2.36 m in diameter and
2.4 m in length. Once inflated, it expands to 3.2 m in diameter and 3.7 m
in length, providing an internal space of 16 cubic meters, equivalent to
a small bedroom (Taylor et al. 2020; Wells 2019).
In 2006, Bigelow Aerospace successfully launched an expandable
experimental module into space (Seedhouse and Seedhouse 2015a).
The interior temperature of the laboratory was about 26 degrees
Celsius, which was suitable for human occupation, and its solar panels
had fully deployed, providing 26 V of electricity to the scientific
instruments in the cabin. United Launch Alliance (ULA) launched
Bigelow Aerospace’s inflatable space hotel on an Atlas V rocket in 2020,
and the two companies held a collaborative meeting at the 32nd Space
Symposium in Colorado. ULA held a launch spot for the space hotel
(Dawson and Dawson 2017). The Bigelow Aerospace commercial space
hotel, called the “Bigelow Expandable Activity Module,” is compressed
during launch and inflated after entering space. Once fully inflated, it
provides 330 cubic meters of internal space for passengers orbiting the
Earth, providing more space for them to live in. The inflatable space
hotel designed by Bigelow, officially named the “Bigelow Expandable
Activity Module”, was developed by the United States-based aerospace
company Bigelow Aerospace, with funding of $ 17.8 million from the
National Aeronautics and Space Administration (NASA) (Joyce et al.
2017). If this module is used on a space station, it will not only
temporarily increase the floor area” of the station but also indicate that
the long-held idea of the “space hotel” is moving towards reality. This
new experimentation will offer significant lessons for the
establishment of habitable living spaces for humans in outer space in
the future.
Robert Bigelow, the founder of Bigelow Aerospace, began his career
in the hotel industry and now envisions expanding his business into
space as the space industry is booming. According to Kirk Shireman, the
director of the International Space Station program at NASA, “The space
hotel represents the future, and as humans move further away from
Earth, we will need these types of modules. In fact, we will also use a
space hotel when we live in near-Earth orbit” (A. Chen 2016). The
inflatable space capsule is not a new concept; NASA began developing it
in the 1990s, but the project was eventually canceled due to funding
issues. Bigelow acquired this technology from NASA and continued to
develop it, launching two models using Russian rockets in 2006 and
2007. The previously launched test capsules have already been
evaluated for their overall performance as potential habitats for future
human deep space exploration (Taylor et al. 2020).
The Bigelow inflatable space hotel will dock with the Tranquility
(node 3) of the space station for two years. According to Bigelow
Aerospace staff, space station astronauts will gradually inflate the hotel
at a slower pace once the hotel is docked. This has been done to allow
full observation of its expansion process in space and ensure
astronauts' safety. During the docking period, astronauts will study the
radiation shielding performance, temperature control capabilities, and
the ability of their cabin to withstand impacts from meteoroids or space
debris etc. (Council 1998). The astronauts will enter and exit the hotel
three to four times a year to collect data, but they will not live or stay
inside it.

5.2.3 The Voyager Spacecraft


The Voyager spacecraft, a hotel-like space capsule, was expected to be
completed in 2018 and was designed by Astronaut Aldrin, the second
American astronaut to walk on the Moon. Known as the Voyager, this
spacecraft is equipped with various comfortable amenities and can
accommodate up to 50 people per trip. It travels in the solar system’s
orbit between Earth and Mars at a speed of 21,000 km per hour,
propelled by the gravitational forces of the Sun, Earth, Mars, and the
Moon (Nakanotani et al. 2023). The journey to Mars will take about 6 to
9 months. The transporter can be reused, making it a reliable tool for
human exploration, migration, and interstellar business. Once the
spacecraft is in orbit, it will shuttle back and forth between Earth and
Mars-like an everlasting bus”, said Ejdling, a scientist involved in the
project (Howard 2021).

5.2.4 The Moon Hotel


The Moon Hotel is expected to be completed in 2050, with the designer
being Hans-Jurgen Rombert (Bose 2012). The estimated cost per
person is 140,000 euros for a two-week stay, excluding round-trip
space travel costs. The Moon Hotel is designed to resemble a twin
tower, and travelers must take a spaceship for approximately two days
to reach the moon to stay there. During this period, a team of
experienced professionals will accompany and guide them. Due to the
dust cloud produced during the landing on the moon, a distance away
from the hotel will be required. When leaving the dust cloud, the
travelers will be able to see the lunar rover at a distance, which will
take them to the Moon Hotel. The hotel is located on the edge of a
canyon 5 km deep and offers a variety of entertainment options,
allowing visitors to experience the low-gravity environment through
gravity games, such as walking in the air and swimming differently than
traditional swimming due to low gravity, where travelers can quickly
jump out of the water like a dolphin. In addition, the hotel provides a
state-of-the-art telescope for observing the Earth in a way never seen
before. The hotel has a water bar and space bedrooms but no elevator
as physical exercise is vital on the moon’s surface, and lack of exercise
can cause muscle atrophy. Moreover, in this low-gravity environment,
people can easily jump to a higher height than on Earth’s surface,
making elevators unnecessary on the lower floors of the Moon Hotel,
which features capsule-shaped rooms connected closely to the living
units. Each unit has a bedroom and a separate bathroom, suspended
freely on thin cables. The room’s height and rotation angle can be
adjusted according to the guest’s preferences through remote control.
The space capsules are like giant lightweight cannons at night,
illuminating the entire hotel. During their stay, travelers can not only
stay in the hotel but also participate in outdoor moonwalks. However,
to avoid exposure to space radiation and the associated risks,
spacewalks must be conducted in groups led by professionals while
wearing space suits. Of course, travelers can also choose to travel by
lunar rover to explore exciting locations on the moon, such as the
landing site of the Apollo moon landing, where Armstrong’s first
footprints on the moon are still visible (Subramaniam 2022), providing
an immersive opportunity for travelers to witness and appreciate
humanity’s space dreams.
5.3 Function Requirements and Services of
Space Hotels
The most crucial function of a space hotel is to maintain life-support in
a space environment, followed by consumer demands and other factors
(Grande and DeLaurentis 2019). The hotel is primarily located in a low
Earth orbit, and the interior plans and designs should include themed
rooms, a medical center, fitness equipment, recreational facilities, a
theater, a self-service shopping mall, and other leisure facilities. An
industrial, agricultural, and scientific research area may also be
constructed outside the main building of the hotel. In addition, an
exterior docking port or “spaceport” for spacecraft is necessary to greet
visitors from Earth.

5.3.1 Life Support


(1) Oxygen Generation System

Humans cannot survive without oxygen; in space, oxygen is mainly


obtained through water electrolysis (Wieland 1994). In an oxygen
generation system, various water sources are converted into hydrogen
and oxygen through electrolysis and interaction with the water
circulation system. The oxygen produced is then released into the space
hotel, while the excess hydrogen is transported to the carbon dioxide
removal loop. The carbon dioxide removal system utilizes hydrogen and
heat to convert carbon dioxide into water and methane for further use
in the hotel (Critchley-Marrows et al. 2016).
(2) Water Circulation System

Water circulation systems that provide water for various purposes


are necessary to sustain human life in space hotels. Due to the lack of
water sources in space, in addition to transporting water from the
earth’s surface, it is essential to recycle as much water as possible. An
ideal space hotel should be designed to recycle all types of water,
including sewage, sweat, and exhaled moisture. Filtered through coarse
filters and then through progressively finer filter beds, the water is
purified to remove impurities. Finally, catalytic oxidation is used to
produce potable water that is suitable for reuse (Akbal et al. 2022).
(3) Power System

To mitigate pollution caused by coal or petroleum-based electricity


generation and eliminate the potential hazards of nuclear radiation, it is
recommended that all electrical power in a space hotel be generated
through solar energy (Abdelsadek et al. 2022). The design of the hotel
may include large skylights and mirrors, which can regulate the
intensity, time, and angle of natural light to create a clear day and night
cycle and seasonal changes. The utilization of natural light can also save
electricity.

5.3.2 Consumer Demand


In addition to the above-mentioned functional needs, customers of
space hotels have certain unique experiential demands that differ from
those in traditional land-based tourism, including:
(1) Expansive Views of Space

According to research surveys, the primary desire of space hotel


guests is to experience panoramic views of the Earth and space (Crouch
et al. 2009). Consequently, the installation of viewing windows,
observation cameras, and telescopes is required in the space hotel,
enabling visitors to truly witness the myriad galaxies in the universe
with their eyes beholding the enigmatic beauty of the cosmos
(Davenport 2018). The key design element in space hotels will be the
observation deck. This could include guest rooms, public spaces,
exclusive viewing rooms, and planetarium-like domes that provide
more memorable and impressive views of the universe.
(2) Comfortable Space and Environment

To ensure guest comfort, a space hotel requires an efficient thermal


regulation system that regulates humidity (Critchley-Marrows et al.
2016). A pressure control component maintains a comfortable
environment for human habitation and should include the release of
cabin air to space, the injection of nitrogen and oxygen, and the
monitoring of cabin pressure stability. A combination of condensing
and non-condensing heat exchange fans should be equipped, with one
used for air circulation and the other for dehumidification. The system
should also include radiators and heating elements to maintain a
temperature range of 18.3°C to 26.6°C for guest comfort.
(3) Hotel Staff

The hotel staff is crucial for the operation of a space hotel


(Strickland 2017). However, as a unique environment, space hotels
differ from traditional land-based ones. Thus, service staff for space
hotels require specialized knowledge in both space sciences and the
hospitality service industry and also well-trained physical fitness to
adapt to the space environment. Professional training institutions must
be provided to recruit competent service personnel, given the limited
time in spacekeeping. Otherwise, irreversible health damage could
occur. From a humanistic and cost-effective perspective, space hotels
should incorporate artificial intelligence software and hardware to
automate repetitive work and reserve personalized and professional
service to hotel staff to provide satisfactory space services.

5.3.3 Hotel Medical Services


Due to the extreme impact of the space environment on the human
body, in addition to the screening and training of space tourists, space
hotels are required to provide essential needs, such as life support and
leisure, as well as medical services to alleviate the discomfort and
potential illness of tourists during their travel in space (Doule et al.
2012). Therefore, medical facilities are an indispensable service
function of space hotels.
(1) Pre-training, In-flight training, and duration limitations for space
tourism

Before their space travel, tourists require pre-training, as the zero-


gravity environment and space radiation can still negatively impact the
human body (Laing and Crouch 2004). As a result, fitness equipment
needs to be installed in space hotels to counteract the physical decline
caused by weightlessness, including the loss of calcium in bone
structure, decreased ability of the heart to circulate blood throughout
the body, and muscle atrophy. Additionally, the changes resulting from
weightlessness can lead to headaches, nasal congestion, and temporary
physical deformities. Therefore, guests are recommended to stay for no
more than ten days in space hotels.
(2) Training Services

Medical evaluation and training are necessary for space tourism to


ensure the health of astronauts and guests (Bogomolov et al. 2007).
Suitable physical conditions are required for guests, and pre-training is
necessary. Training includes the medical, food, and health practices, as
well as simulated flying systems, centrifuges, and space suit wearing
training, to ensure that guests can travel safely and experience an
unforgettable journey.
This chapter aims to illustrate that while space hotels may borrow
leisure concepts from their terrestrial counterparts, there are
significant differences in their actual operation, from the supply side of
their environment, design, manufacture, and operation compared to
terrestrial hotels. On the demand side, space tourism has unique
requirements, such as passengers’ economic conditions, physical and
mental conditions, safety concerns, and the need to balance leisure and
life experiences, which differ from those of terrestrial tourism (Mekinc
and Bončina 2016). Therefore, space hotels' economic and social
functions present a new opportunity for individuals to explore the
purpose and significance of their existence.

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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_6

6. Space Insurance
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

Space tourism faces potential risks during space travel, and even with a
“safety-first” design, it is impossible to ensure that nothing goes wrong.
Therefore, it is necessary to use space insurance to protect against
potential risks and reduce the possibility of economic losses. When
risks occur, the project can receive compensation from space insurance.
For the insurance industry, space travel is a new field, and it is expected
that by 2040, the revenue from this sector will exceed $ 1 trillion
(Tü rksoy 2020). Such a large market demand undoubtedly represents a
“big cake” for the insurance industry, with enormous business
opportunities and potential. However, there are also high risks behind
the huge demand, and acquiring risk data is a significant challenge. The
main reason is that space tourism has been commercially operated
since 2021. The operations and flight safety data are still limited.
Solutions are limited, but few approaches exist, such as simulating and
predicting information data from the space industry supply chain.
However, insurance companies are not fully prepared to carry out
comprehensive business, which has a significant risk cost for space
tourism.

6.1 The Emergence Period of Space Insurance


2021 was hailed as the year of space tourism, indicating that the space
tourism industry is still in its nascent development stage and is higher
in risk than general air travel (Peng et al. 2022). Space risks mainly
occur during the launch and landing stages of spacecraft. Alexander
Saltman, the Executive Director of the Commercial Spaceflight
Federation, emphasized that the risk of a serious event is that it can
result in loss of life once a risk occurs. The resulting losses in life and
aerospace assets represent a huge economic compensation. Therefore,
the space tourism market needs third parties in the space tourism
industry chain to collaboratively manage risks. Regulatory agencies and
insurance providers play a significant role in predicting the global
market demand and risk estimation of the space tourism industry
chain. Governments need to strengthen strict policy formulation and
regulation to avoid or mitigate space travel risks, and insurance
regulatory agencies should promptly standardize the items and
amounts of insurance premiums for aerospace technology insurance
services (Billing and Bryson 2019). The International Aviation and
Space Insurance Association predicts that insurance companies will
find it difficult to avoid losses in space services without appropriate
control measures. This is also why only a few insurance companies
directly participate in space tourism, mainly because space travel risks
are difficult to control. Swiss Re once participated in space insurance
but withdrew from the market in 2019 due to huge losses. With
synchronous orbit satellite missions shifting to low Earth orbit, the
overall price of satellite launch services has declined, and synchronous
orbit satellites will continue to face a challenging situation in the future.
Current data shows that the estimated insurance ratio of synchronous
orbit satellites is 43%, while the average for low Earth orbit satellites is
only about 5.5% (Undseth et al. 2021).
Insurance regulation can reduce risk and provide favorable
conditions for the insurance industry to enter the new field of space
travel. Between 2014 and 2016, there were many high-profile launch
failures and accidents despite more than 60 years of development
experience in space technology (Harrington 2017). Although countries
hope to promote the development of their domestic space industries,
they also require a certain degree of insurance and compensation
protection to protect themselves from potentially costly disasters and
avoid bearing the high costs of insurance compensation alone. For any
country in the world, space projects are a high-risk and expensive new
activity. The price of launching spacecraft is extremely high, and the
operational costs of ground service command centers and spacecraft
maintenance further contribute to the operational costs and risks of
space activities. Therefore, without the support of national policies and
space insurance guarantees, it is difficult for private space companies to
bear such huge investment risks, which has led to a reluctance of
private insurance companies to enter the space field and is not
conducive to commercializing space tourism. In developed countries,
many private companies have already entered the space industry. To
increase the survival possibility for private space companies, lower the
barriers to entry in the space industry, and promote the development of
space tourism, many countries have undertaken most of the project
costs. They offer discounted or free technology, space facilities,
spacecraft launch services, and other benefits to private companies to
some extent share the risks of private companies’ projects. Based on
the high-risk, high-return nature of commercial space projects, private
companies are constantly seeking ways to mitigate project risk and
enhance project reliability. Signing space policies following strict
regulations by international organizations and national governments
will be a highly effective approach, as the future space insurance
market has great development potential.
As a new type of insurance, space insurance is a novel
comprehensive insurance involving property and life insurance. The
management of space insurance products by domestic insurance
companies and regulatory authorities is still in the exploratory stage,
and there is currently no officially implemented project. The emergence
of a new space insurance market requires not only the collection,
statistics, and analysis of a large amount of data and information
related to relevant cases, but also the enhancement of cooperation and
communication with space insurance companies or regulatory
authorities. Together, they can explore feasible space insurance design
and regulatory procedures to establish the basic market conditions for
space insurance, such as the insurance coverage framework and
insurance rates. At the same time, there is still a discrepancy in the
positioning of the insurance industry in space tourism. If insurance is
mandatory, insurance companies will play the role of “enforcers” and
become “supervisors of customers rather than service providers”
(Billing and Bryson 2019). In addition, the scope of insurance for
spacecraft in future space tourism projects will also be a controversial
topic. This is because the flight altitudes of spacecraft differ in various
space tourism projects. Without clearly defining the outer space,
insurance companies find it difficult to help project operators
determine whether the spacecraft should be insured as an aircraft or
spacecraft.

6.2 Development and Current Status of Outer


Space Insurance
6.2.1 Development and Current Status Abroad
Space insurance primarily includes rocket launch insurance, satellite
launch insurance, satellite launch and initial operation insurance, in-
orbit satellite insurance, and third-party liability insurance for satellite
launches. Looking back at the development history of global space
insurance, it can be divided into three stages.
(1) Initial Stage (1965–1974)

1965 the first space insurance policy appeared in the insurance


market, covering the synchronous geostationary orbit satellite
—“Intelsat-1” (Maini and Agrawal 2011). The policy only provided
coverage for third-party liability and pre-launch insurance, without
launch or in-orbit life insurance coverage.
(2) Slow Development Stage (1974–1996)

As rocket and satellite technology matured, space insurance


gradually gained acceptance from mainstream insurance companies
worldwide and optimized its underwriting programs, significantly
improving underwriting capacity. However, two accidents in 1977 and
1979, respectively, led to the insolvency of the entire space insurance
market, which caused the reorganization of the reinsurance market. In
1977, the Orbital Test Satellite (OTS-1) of the European Space Agency
suffered a total loss due to a Delta rocket malfunction (Morris 1984). In
1979, the SATCOM III satellite suffered a total loss due to a malfunction
of the apogee motor (Harland and Lorenz 2007), which prevented it
from entering orbit. The amounts paid for these two claims totaled
$105 million.
(3) Diversified Development Stage (1996-Present)

With the wide application of commercial satellites worldwide,


especially with the continuous evolution of new space technologies
such as satellite constellations, the design of space insurance programs
has become increasingly complex. The rapid development of space
technology determines the further growth of the space insurance
market. No insurance policies or premiums are implemented in this
field, and no underwriting of any projects reflects the idea of tailor-
made space insurance. This significant characteristic distinguishes
space insurance from other types of Earth insurance (Manikowski and
Weiss 2013).
According to international regulations, any country launching a
satellite is required to purchase a type of third-party liability insurance
(Suchodolski 2018), similar to the mandatory vehicle insurance that is
required when purchasing a new car. This means that if there are
injuries or property damage to personnel on board during or after the
launch, or if there are casualties or losses to third parties on the ground
during landing, the launch country should be provided with the
corresponding guarantee. As for launch insurance and in-orbit
insurance, users can purchase them according to their needs. During
the underwriting process, insurance companies use historical data
related to the spacecraft in each case to perform systematic analysis
and determine the mandatory insurance level for that spacecraft. For
example, after the technical department of an insurance company
evaluates the risks of a spacecraft in a space tourism project, accurate
results for flight risk evaluation can be obtained. Based on this
evaluation result, the insurance company can estimate the maximum
potential loss that may occur during the mission for the spacecraft and
determine the specific mandatory insurance level for that spacecraft.

6.2.2 Developmental History and Current Situation of


China’s Aerospace Insurance
China’s space technology is leading the world, but commercial space
activities have been relatively slow compared to Western countries.
Therefore, the development of China’s aerospace insurance market has
also been rather late and can be divided into three stages of
development as follows:
(1) Policy Insurance Stage (1997–2004)

In August 1997, under the organization of the Ministry of Finance


and the People’s Bank of China, nine financial insurance companies and
China Reinsurance jointly established the China Space Insurance
Consortium (Chen 1993). During this stage, space insurance in China
was mainly policy-based insurance.
(2) Rise of Commercial Insurance Models (2004–2014)

In 2004, the former China Banking Insurance Regulatory


Commission (CBIRC) stipulated a new regulation for aerospace
insurance, which adopted the “one market, two modes” approach. The
commercial co-insurance model gradually became mainstream, which
stipulated that the insured should bear part of the insurance target in
case of an insurance accident. The purpose of this regulation is to
ensure that the insured takes the necessary measures to maintain the
safety of their property, prevent risks from occurring, and minimize the
moral hazard in insurance (Lessambo 2023).
(3) A New Era in Commercial Spaceflight (2015-Present)

In 2015, there was a global surge in commercial spaceflight, and


national policies provided support for its development. For instance,
Ping An Property & Casualty Insurance Company of China innovatively
designed definitions for partial loss of remote sensing satellites and
loss of detection satellites, actively responding to the diverse insurance
needs of commercial spaceflight and providing strong support for its
development (Ma et al. 2019).
In analyzing commercial space insurance, insurance companies
need to collect relevant information about spacecraft, as well as
calculate and analyze the reliability of launch rockets and satellites.
Therefore, insurance companies must have a good knowledge of carrier
rocket and satellite technology and know the spacecraft's potential
risks and specific performance characteristics. For example, at different
stages of satellite life, insurance companies can provide targeted
insurance policies to reduce potential risks and increase the reliability
of projects. It is worth noting that some potential risks require more
complex calculations to obtain satisfactory evaluation results. The
increase in calculation cost will result in an increase in insurance policy
costs, which will decrease project reliability. The future state and
operational capabilities of the commercial space insurance industry
will largely depend on national government policies and the
participation of space community stakeholders, including clients,
insurance companies, and spacecraft owners or project operators.
Currently, the terms and coverage of China’s aerospace insurance
policies, as well as the exclusion of liability, are directly aligned with the
international space insurance market (Smith 2012). In terms of
insurance subjects, the insured include manufacturing units such as
China Great Wall Industry Corporation and China Aerospace Science
and Industry Corporation Limited, operating units such as China
Satellite Communications Co. Ltd., and business satellite user
departments. In contrast, the insurer includes insurance companies
such as People’s Insurance Company of China (PICC), China Pacific
Insurance Co. Ltd. (CPIC), Ping An Insurance (Group) Company of
China, and a few insurance companies in Hong Kong. Insurance brokers
mainly include companies such as Jiangtai Insurance Brokers Co. Ltd.
6.3 Current Commercial Space Insurance
(1) Pre-launch Insurance

Pre-launch insurance coverage mainly includes the risks involved in


transporting rockets and satellites from the manufacturing site to the
launch base, temporary storage at the ground, the docking stage of
rockets and satellites, fuel injection stages of rockets and satellites, and
the risk of engine emergency shutdown after intended ignition or
failure of rockets to leave the launch pad arms after planned ignition
(Pratap et al. 2023).
(2) Launch Insurance

Launch insurance primarily covers the risks involved in launching


the rocket, placing the satellite into its planned orbit, and conducting
in-orbit testing until delivery for use (Luinaud and Salmon 2023). The
insurance policy period is typically specified based on the insured
party’s requirements, with coverage lasting from the beginning of the
flight to 180 or 365 days or longer.
(3) In-Orbit Insurance

In-orbit insurance covers the risks associated with satellite


operation while in orbit until the end of the satellite’s lifespan (Lucas-
Rhimbassen et al. 2019). The insurance policy period is typically one
year, with annual renewal based on the satellite’s in-orbit operational
situation. The start and end points of each stage of risk covered by
aerospace insurance are generally determined based on the risk
transfer points specified in the contract between the insured party and
the rocket and satellite manufacturer. Typically, this contract refers to
the launch services contract signed between the satellite owner and the
rocket manufacturer, as well as the satellite manufacturing contract
signed between the satellite manufacturer and the owner.
(4) Third-Party Liability Insurance
According to Article V, Sect. 6.2 of NASA’s Shared Launch Agreement,
“Users shall be provided free of charge insurance to protect the United
States Government and its contractors against any damage caused by
any third party, who is free to detonate the payload after it has been
separated from the Space Shuttle” (Atney-Yurdin 1986).
The aforementioned commercial space insurance contracts can be
broadly divided into four categories: pre-launch insurance, launch
insurance, in-orbit insurance, and third-party liability insurance
(Kuskuvelis 1993). After negotiation, the insurance company provides
the insurance contract to the spacecraft owner or project operator. On
the one hand, the insurance company primarily considers existing
technology and statistical data to seek and ultimately derive an effective
plan to prevent potential risks of space tourism projects, thereby
reducing possible economic risks for spacecraft owners or project
operators. On the other hand, spacecraft owners or project operators
will strive to obtain maximum insurance coverage with the lowest
premium. To achieve the expected goals of both parties, many
innovative insurance contract schemes will be introduced. For instance,
a series of or a specific number of space vehicles can be insured
together, while the insurance coverage increases with the number of
insured space vehicles. Additionally, insurance premiums can be
subdivided into several different payments. The insurance company can
offer a clause for “loss-free return of premium,” applicable to certain
insurance premium payments, such that assuming no accidents occur
within the coverage of the space insurance contract during the entire
mission, the insurance company should return the original price of that
portion of the premium to the space vehicle owner or project operator.

6.4 Risks of Space Tourism


The abovementioned insurance is uncertain in securing the nascent
space tourism industry. Space tourism projects’ high risks exist for well-
trained astronauts and ordinary tourists who purchase tourism
products. While space tourism is gaining popularity, the high-risk
nature of the project itself cannot be ignored. A specific insurance
system should help insurance companies develop a sound risk
assessment and prevention system, as well as various risk reduction or
transfer strategies, enabling space insurance companies to provide
professional and accurate insurance services to the insured parties
involved in space tourism stakeholders. Space insurance policies must
clarify the elements that constitute project risks, determine the
potential risks of insured projects, and assess the probability of
accidents. Even if some categories of risk elements are not included in
the insurance policy, the insurance company still needs to analyze
relevant flight data from the past to evaluate the potential risks of
spacecraft at various development stages and the probability of
accidents. This will help the insured party comprehensively understand
potential risks and accept customized space policies. The insurance
company must also deeply understand the risks involved in space
tourism projects. Especially for the in-orbit space insurance business,
the insurance company needs to rely on professional flight data analysis
technology to evaluate its deterministic risks. The commercial
development of space tourism is both an opportunity and a challenging
task for the insurance industry. In the new space insurance field, many
risk management issues are awaiting the insurance industry and
related regulatory agencies to solve, which are the stumbling blocks
that currently hinder the commercial development trend of space
tourism (Chang 2015). However, the emergence of improved insurance
standards and national policies will establish a realistic and reliable
insurance system to solve related risk management issues in the
commercialization process of space tourism. The following risks can be
identified for designing and implementing space tourism insurance.

6.4.1 Risks Before Launch


Whether the spacecraft can reach the relevant technology standards is
an essential consideration for the success of the launch. On January 28,
1986, the US Space Shuttle Challenger exploded 72 s after taking off
from Cape Canaveral, Florida, killing all seven American astronauts,
including a teacher (Parsons 2020). The root cause of this accident
came from an inconspicuous rubber part, known as an O-ring. Due to
low temperatures during launch, the rubber lost its elasticity, causing a
leak of high-pressure, high-temperature gas from the normally-sealed
solid rocket booster. This eventually led to the high-speed
disintegration of the space shuttle in the upper atmosphere.
6.4.2 Risks During Space Travel
(1) Impacts of Extreme Weather and Complex Space Environment

During spacecraft launch, extreme weather conditions may impact


the process. Generally speaking, a spacecraft launch is scheduled for a
favorable launch window to ensure smooth operation. Nevertheless,
there are still some unavoidable and uncontrollable factors that may
occur. Space weather poses risks to spacecraft and astronauts during
their orbit around the Earth (Hapgood 2019). Coronal mass ejections,
solar energetic particle events, geomagnetic storms, and other space
weather phenomena can significantly impact spacecraft, ranging from
affecting individual missions to causing complete mission failure. They
can also expose astronauts to radiation levels beyond safe limits.
Therefore, considering space weather and its effects is crucial for
spacecraft design and operation.
Additionally, numerous meteoroids of different sizes in space can
significantly damage or even destroy spacecraft, just like space debris.
Although individual meteoroids in Earth's orbit are rare, meteor
showers occasionally occur and can threaten spacecraft or space
stations. Such meteoroids can sometimes destroy satellites (van Pelt
2005b). Most meteor showers orbiting the Sun are known, and their
direction can be predicted. However, similar to space debris,
meteoroids can pose significant hazards to future space hotels,
necessitating the development of some mechanical protection device.
(2) Operational Errors During Flight

Operational errors by space tourists can also potentially lead to


mission failures. Space tourists generally undergo an intensive training
period of six months, which does not guarantee complete mastery of
the intricate handling of sophisticated space instruments (Chang 2017).
It is challenging to regard passengers as having the same level of
training required for “professionally trained individuals” like
astronauts. Additionally, if a tourist engages in extra activities such as
spacewalks, further training is necessary, usually provided by space
adventure vendors. In contrast, some customers of Virgin Galactic
receive only one week of training and, in some instances, only three
days of training. Any operational mistakes passengers make during the
flight can result in irreparable damages.

6.4.3 Risks During and After Return


(1) Health Risks for Travelers

Space tourism can have varying degrees of impact on passengers'


physical and mental well-being. During the spacecraft’s ascent through
the atmosphere, passengers experience forces of 3–6 G, which can be
overwhelming for the human body (Clément et al. 2020). While
professional astronauts undergo centrifuge training, space tourists
usually only receive basic flight training. Upon entering space, the
transition to a weightless or microgravity environment can lead to
temporary blindness, visual impairment, motion sickness, and even
loss of consciousness among passengers (Williams and Howell 2022).
In the space environment, passengers may also experience bone loss,
slow blood flow, and fluid shift towards the upper body or head. All of
these pose potential risks to their physical well-being. Therefore,
special attention should be given to passengers' physical condition with
longer space stays. Individuals returning to Earth after living in a
weightless state may experience difficulties with independent walking
for a certain period of time.
(2) Psychological Risks for Travelers

Space tourism can also have an impact on the mental health of


passengers. Short-term space flight may lead to psychological problems
such as claustrophobia and fear of large objects, which may persist for
some time after returning to Earth (Williams and Howell 2022). In
addition, psychological risks primarily concern whether passengers can
work harmoniously with others in confined spaces. In space stations or
space hotels, all passengers must adopt a cooperative attitude, and the
presence of an unreasonable or emotionally unstable individual can
significantly impact the safety and experience of other tourists.
6.5 The Coverage Scope of Space Insurance
Faced with the environmental, equipment, and physical risks associated
with the aforementioned space travel, insurance companies deal with a
spectrum of risks ranging from external to internal, from terrestrial to
outer space (Bensoussan 2010). Thus, innovative actuarial systems are
required to assess coverage scopes to balance underwriting risks
between industries and demands. However, this advancing commercial
service in three-dimensional space should not be met with hesitancy.
Developing and evolving space insurance not only fosters innovation
within the insurance industry but also contributes to the innovative
development of the space industry. To ensure the commercial services
of space tourism have sufficient security, national regulatory agencies
must thoroughly review the qualifications and certifications of privately
owned space vehicles. This includes flight licenses and other relevant
permits learning from the International Civil Aviation Organization to
establish rigorous certification systems. These systems ensure the safe
operation of space vehicles and reduce the probability of accidents.
Furthermore, insurance companies must be cautious in formulating
coverage plans for personal accidents involving crew and passengers in
space tourism projects. As the primary target audience for current
space tourism projects consists of high-income billionaires, the utmost
priority is to minimize potential risks of personal accidents, ensuring
the safety and security of their lives and properties. Without insurance
coverage, crew and passengers may suffer psychological or physical
trauma in the event of accidents during space transportation or upon
return. Operators not only bear the risk of substantial compensation
and potential bankruptcy but may also face delays in compensatory
payments due to short-term cash flow issues, causing crew members or
their families to be unable to receive timely and fair compensation.
Therefore, the design of space tourism policies aims to meet the needs
of insurance providers and consumers, appropriately reflecting
insurance companies' cost considerations and profit requirements
while providing satisfactory insurance coverage for space tourists.
Insurance regulatory authorities are responsible for ensuring the
proper management of this market promoting the sound operation of
the space tourism insurance market to support the development of
space tourism (Meeks 2014).
Furthermore, safety accidents involving space vehicles can
significantly negatively impact the image of space tourism projects
(Rising and Leveson 2018). It could lead people to perceive the project
as having a low safety factor, unable to guarantee personal safety,
resulting in resistance and lack of support for developing space tourism
projects. It is foreseeable that without any life insurance, such accidents
would be a disaster for the commercialization of space tourism. From
the perspective of insurance companies’ interests, when guaranteeing a
space activity with a high-risk factor, the outcome of the project is likely
to fall short of the company’s expected profits, reducing the willingness
of insurance companies to enter the field of space tourism. The
government can introduce a series of favorable policies to encourage
the insurance industry to become a solid part of the commercial chain
of space tourism. State-owned insurance companies can lead in
researching and initially developing space insurance businesses. Once
the business profits, other private insurance companies will join and
expand the space insurance industry. However, the premise of
implementing this plan is that regulatory authorities must strictly fulfill
their responsibilities of market supervision and guidance to prevent
the occurrence of monopolies. With the government's support, as the
first group of insurance companies enter the space sector, their market
shares will gradually grow in the development of the space insurance
industry. If the regulatory authorities are not responsible, the threshold
for the space insurance market may be raised by the first group of
insurance companies, making it difficult for other insurance companies
to enter and compete with them. If such a situation arises, it will be
challenging for the industry to establish healthy competition in the
space insurance market, resulting in a lack of innovation and vitality,
which is not conducive to promoting the development of this emerging
market (Nicholson 2019).
Additionally, the discourse power within the space tourism industry
may become concentrated in the hands of the initial group of space
insurance companies, ultimately reducing the bargaining power of
policyholders. Apart from strictly adhering to market regulations, space
insurance companies must obtain licenses from regulatory authorities
and be able to analyze pertinent data on space vehicles and evaluate
potential risks (Bensoussan 2010). For example, by estimating the level
of damage to the vehicle in different unforeseen accidents, an accurate
claim amount can be determined, qualifying them to provide insurance
contracts for space tourism projects. Subsequently, under the guidance
of regulatory authorities, space insurance companies will utilize their
capabilities to assess the potential risks of space vehicles and
implement proactive risk management strategies to prevent accidents
and ensure the reliability and accuracy of insurance services. These
potential risks include safety accident risks, political risks, and
terrorism risks. Space tourism insurance should estimate the
abovementioned risks to determine the policy content. Space tourism is
becoming a reality, and private space tourism is gradually approaching
actualization. For the insurance industry, space travel is an entirely new
development area. Although the risks faced by space tourism can be
categorized into four parts: pre-launch risks, risks during space travel,
risks during reentry, and risks related to the current space tourism
environment, the scope of coverage required by space insurance and
the identification and assessment of risks still need further refinement.
Risk management strategies for space tourism need continuous
improvement, and protecting the rights and interests of space tourists
and their families still needs to be strengthened (Agarwal et al. 2021).
This presents both opportunities and challenges for the current
insurance industry and serves as an opportunity for diversified services
and innovative development.

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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_7

7. Legislation of Space Tourism


Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

Space law is the collective term for international laws that regulate
human activities in outer space (Kostenko 2020). It is a universally
accepted and binding international law that governs the conduct of
nations and their citizens in outer space and on celestial institutions. It
encompasses regulations related to space sovereignty, space resources,
space environment, space transportation, space liability, space arms
control, space remote sensing, and space stations. The current
principles of space law uphold the principle of peaceful use of outer
space and celestial institutions by all nations, and it has become an
integral part of modern international law.
Notably, when the United States and the Soviet Union launched their
respective spacecraft into orbit for the first time, it did not provoke
protests from other countries. This demonstrates that flights in outer
space, even if they pass over the airspace of a particular country, should
be considered activities outside of national territories. However, it is
worth noting that the existing provisions of international space law
only establish partial principles regarding activities in outer space
(Stewart 1988). These rules require further refinement.
In addition, international space law has not adequately reflected
legislation on the legal responsibilities and status of private companies
engaged in commercial activities in outer space (Freeland 2005).
Therefore, major spacefaring nations need to unite and work together
to address legislative issues in the emerging field of space tourism and
resolve potential legal conflicts arising from commercial activities in
space. For instance, questions such as whether private companies have
the authority to construct space hotels on the Moon and the legal rights
enjoyed by these establishments within such a jurisdiction are still
unresolved. These questions involve space tourism property rights and
the legislative scope of space tourist jurisdiction, rescue issues, and
accident liability.
Current spacefaring nations such as the United States and Russia
have already conducted extensive research on the legislative aspects of
commercial space tourism within their respective jurisdictions,
accumulating judicial experience. However, an improved international
legal framework is necessary to address the challenges posed by the
commercialization of space tourism. This framework should
fundamentally resolve legal conflicts arising from commercial activities
in outer space and help project operators from every nation to
safeguard their legal rights, promoting fair competition in the space
tourism market. Contemporary space law generally originated from
resolutions unanimously adopted during the United Nations General
Assembly in 1961 and 1963. In summary, all nations recognize their
legitimate right to engage in peaceful activities in outer space. No
country may assert sovereignty over outer space or any celestial body
(Kopal 1988). However, responsible liability is attributed to the
launching entity conducting activities in outer space.
7.1 International Law on Space Tourism
The service models of the space economy mainly include three types:
enterprises serving other governments, enterprises serving
enterprises, and enterprises serving individuals (Spector and Higham
2019). Space tourism currently falls under the category of the third
type of service. The first type of service is for enterprises to provide
technical services to government departments under the guidance and
supervision of regulatory agencies while also receiving space
technology assistance and funding from government departments.
Government departments encourage benign technological research and
development competition in the market by providing technology and
funding to private enterprises. After the enterprises in the market have
developed, government departments can subcontract some space
infrastructure construction services to private enterprises to increase
the innovation power of space technology and promote the
commercialization of the space economy.
Meanwhile, as the market matures and technology continues to
innovate, some investment risks in the market will be shared by private
enterprises. Emerging technologies developed will return to the public,
and the cost of space technology services will correspondingly
decrease. For example, the funding that SpaceX won from NASA’s bid
injection has helped overcome its fundamental survival problems and
continues to support its development. In addition, after private
enterprises provide services to the government, regulatory agencies
should gradually guide the cooperation between relevant private
enterprises, such as space insurance companies providing space
facilities or space passenger insurance services for space tourism
projects. These commercial relationships involve the rights and
obligations of governments, enterprises, and consumers. They should
be governed by a systematic international law to establish a good guide
for developing the space economy and provide reasonable solutions to
possible risks.
To regulate international space activities, establish the rights and
obligations between contracting parties, clarify the principles of human
space activities, and establish liability for damages, among the many
international conventions, the following four conventions are related to
outer space activities.

7.1.1 Outer Space Treaty


The Treaty on Principles Governing the Activities of States in the
Exploration and Use of Outer Space, Including the Moon and Other
Celestial Bodies (hereinafter referred to as the Outer Space Treaty)
came into effect in 1967 (Coffey 2009). This treaty is the first
international treaty on outer space and is the foundation of
international space law, often called the “Constitution of Outer Space.”
Many provisions of the treaty are indirectly related to space tourism.
Although the treaty applies to all countries engaged in the
exploration and use of outer space, its “ten principles,” such as the
principle of freedom of exploration and use, the principle of
preservation of the space environment, the principle of common
interest, the principle of the rescue of astronauts, and the principle of
international cooperation, are undoubtedly applicable to space tourism
activities. The principle of state responsibility, included in the treaty,
mandates that a country must bear corresponding responsibilities for
its own space tourism activities as the registering state or launching
state. Furthermore, a country carries international liability for any
damage caused by objects launched by it (Qizhi 1997).

7.1.2 Rescue Agreement


The Agreement on the Rescue of Astronauts, the Return of Astronauts,
and the Return of Objects Launched into Outer Space (hereinafter
referred to as the Rescue Agreement) entered into force in 1968 (von
der Dunk 2008). This agreement calls for the prompt and safe rescue of
astronauts in distress, accidents, or emergency landing situations, as
well as the expeditious and complete return of astronauts and objects
launched into outer space. It outlines obligations in three aspects:
notification, rescue, and return. It has a clear and enforceable treaty
objective, combining humanitarian considerations with the principle of
national sovereignty in a balanced manner. As space tourism has
become a reality due to the advancement of space technology, the
applicability of the Rescue Agreement has been challenged for private
space travelers that need to be rescued. Nevertheless, the relevant
provisions of this agreement continue to serve as a reference for
addressing legal issues related to space tourism activities.

7.1.3 Liability Convention


The Convention on International Liability for Damage Caused by Space
Objects (hereinafter referred to as the Liability Convention) entered
into force in 1972 (Foster 1973). This treaty specifies the liability of the
launching state among the contracting parties for damage caused by
outer space objects, providing detailed provisions regarding the entities
responsible, joint liability towards third parties, the filing of
compensation claims with time limits. The Liability Convention
establishes two principles of attribution: absolute liability and fault-
based liability (Hertzfeld and Nelson 2013). It introduces regulations
on state responsibility, whereby states are held accountable for
governmental or non-governmental activities in outer space. This
differs from the traditional approach in international law, where states
are not responsible for the wrongful acts of private individuals.
Consequently, the rise of space tourism has raised questions about the
applicability of the Liability Convention for private entities, leading to
suggestions for revising the convention to adapt it to the development
of space tourism and enable it to serve as a more effective framework in
adjudicating disputes. For example, the Long March 5B, adopting a
semi-direct ascent configuration, enters orbit with the core stage and
payload together during each launch. After separation, the core stage
enters a “passive” phase where it loses communication capability with
the ground, and the autonomous control system is shut down. While
measures have been taken during the rocket’s design to address the re-
entry risk of debris and detailed planning for debris risk control, the
uncontrolled re-entry stage of a 20-ton object like the Long March 5B is
relatively rare in the history of spaceflight. Predicting the exact re-entry
point becomes difficult with the uncertainties of the upper
atmosphere’s environment. In 2020, reports were speculating that a
metal object from the rocket damaged at least two buildings in
Mahounou Village, Cô te d’Ivoire (Pă durariu 2022). The Liability
Convention is important because it can guide the attribution of
responsibility for such an event.
7.1.4 Registration Convention
The Convention on Registration of Objects Launched into Outer Space
(hereinafter referred to as the Registration Convention) entered force
in 1976. The treaty stipulates that the contracting states and the
launching states are required to register objects launched into outer
space to identify and delineate outer space objects (Gorove 1993).
Additionally, the treaty mandates the establishment of a central register
of objects launched into outer space, maintained by the Secretary-
General of the United Nations. With the rapid development of space
tourism since its inception in 2021, there will be an increasing number
of rockets launching into outer space. Considering this, adjustments to
the Registration Convention should be made to accommodate and
provide a practical basis for such developments.

7.2 Space Tourism Legislation of Related


Countries
The abovementioned convention is an international treaty that
primarily sets forth principles and normative standards, with the
implementation yet fully specified. Given the variations in space
technology development and commercial operational models among
countries, each country must tailor the regulations for the development
of space tourism according to their specific circumstances (von der
Dunk 2019). Additionally, governments should actively engage in the
timely and systematic completion of legislative frameworks.

7.2.1 Chinese Space Law


Although China’s space technology has achieved significant
advancements in recent years, the theoretical research and judicial
practice of China’s space commercial activities are still in the early
stages. A mature legal system has not yet been established to safeguard
space tourism and other space commercial activities. Furthermore,
China’s plans for space tourism are set for 2024 to 2025, which poses
challenges regarding legislative precedents and practical foundations.
The current Chinese space laws govern various areas, processes, and
matters related to space activities. These include the funding of space
research activities, access to and regulation of space research and
production activities, safety management of aerospace enterprises,
investment, tax administration, management of aerospace assets,
specific regulatory aspects of space activities, management of
departments involved in space-related businesses, space safety,
emergency management, and environmental protection (Yeshchuk and
Vasina 2019). China has numerous complex and fragmented legal
documents pertaining to space activities, yet a comprehensive system
has been formed. Multiple relevant legal documents apply to space
activities, but few specialized space laws for space tourism. The existing
space laws have broad coverage; however, many gaps and gray areas
remain. The fragmented legislative approach presents several issues,
highlighting the urgent need to enact a comprehensive space law.
The Interim Measures for the Administration of Licenses for Civil
Space Launch Projects came into effect in 2002. It emphasizes that
license applicants must comply with the principles and conditions
outlined in the regulations, such as not posing a threat to national
security and interests or causing irreparable damage to public safety
and property due to their gross negligence or intentional misconduct
(Lu 2020). In 2017, the State Administration of Science, Technology,
and Industry for National Defense of PRC issued the Guidelines for Civil
Space Launch Project Licensing to guide the application and processing
of licenses for civilian space launch projects. According to these
guidelines, the State Administration of Science, Technology, and
Industry for National Defense of PRC is the competent authority
responsible for making decisions on the acceptance of issuance of
licenses for civilian space launch projects. Additionally, the guidelines
specify the scope of license applications and require that all
applications for civilian space launch projects comply with the
provisions stipulated in these measures.
Space activities in Taiwan are mostly “mission-based” scientific
research projects which have not reached a commercial scale. However,
with the improvement of relevant technologies, government and
private enterprises are gradually equipped with the energy to
participate in the space industry. Therefore, the Space Development Act
was formulated and enacted in 2021, which regulated the purpose,
goals, government policies, exclusive agencies, operational
mechanisms, and other aspects of space activities (Hwang and Chen
2022). It has provided businesses or organizations with aspirations to
develop space technology with a legal framework to follow, ensuring
the protection of their legitimate rights and interests.

7.2.2 US Space Law


The National Aeronautics and Space Act of the United States was
enacted in 1958 after the Soviet Union launched the first artificial
satellite. In 2015, the Commercial Space Launch Competitiveness Act of
the United States was enacted (Zhao 2018). In the latest legislation
related to commercial space tourism, the following three provisions
were outlined: (1) Any material discovered on an asteroid devoid of
biological presence by a US citizen or private entity shall be owned and
controlled by the discoverer. (2) Under the premise that no major
accidents occur, the Federal Aviation Administration does not have the
authority to interfere with private outer space tourism activities.
Moreover, private entities engaging in outer space tourism activities are
prohibited from having their already paid tourists bear the risks. (3)
The legislation eliminates various restrictions on private entities
involved in the aerospace industry, granting them the right to mine
resources in outer space.

7.2.3 EU Space Law


In 2000, the European Union passed the Green Paper on EU Outer
Space Policy and other relevant laws (Cervino et al. 2003). The
legislation has three main objectives: (1) Ensuring that space activities
serve the exploration and application of space, (2) Serving the EU's
common external policy and security policy, and (3) Serving
international cooperation. In 2008, the European Space Agency and EU
Commission members created a joint document called the European
Space Strategy, which established a common outer space policy for the
two regional international organizations.

7.2.4 Russian Space Law


Russia enacted the Law on Space Activities in 1993 and subsequently
developed a series of laws pertaining to outer space activities. In 1996,
On Ratification of Provisions for Licensing Space Operations was
enacted to require private entities engaged in launch activities related
to outer space to obtain a license from the Russian Federal Space
Agency (Jakhu et al. 2017). Individuals who were not approved by the
agency were prohibited from engaging in outer space activities. The
Russian Federal Space Agency also has the power to suspend or revoke
the licenses of individuals who violate relevant laws, regulations, and
provisions. In 2006, a decision was made by the Russian Federation
Government to approve regulations related to space activity licenses,
which require government approval and the fulfillment of specific
conditions for engaging in outer space activities.

7.2.5 UK Space Law


The Outer Space Act was passed by the British Parliament in 1986. This
legislation stipulates that anyone engaged in outer space activities must
possess the Outer Space Activity License granted by the Secretary of
State (Smith et al. 2021). The Act also outlines the procedures and
conditions for issuing, suspending, and terminating licenses. In 2021,
the United Kingdom completed the legislation on space activities.
Recognizing that companies like Virgin Galactic and others are offering
space tourism services to the public, the government deems it
necessary to regulate this industry and manage the emergence of
“space tourists” in the UK through regulations.

7.2.6 French Space Law


In 2008, France enacted the French Space Operations Act, which
provided comprehensive regulations on space activities, defined related
terminology, governed basic principles and systems, and ensured the
rights and obligations of private businesses in the aerospace market
(Lazare 2013). The law also established comprehensive provisions
related to intellectual property rights, space activity licenses, and the
obligation to register space objects.

7.3 Legal Issues in International Space


Tourism
7.3.1 Unclear Legal Status of Space Tourists
International treaties such as the Agreement Governing the Activities of
States on the Moon and Other Celestial institutions only provide
regulations for “astronauts.” However, there exist distinctions between
space tourists and “astronauts (Grunert 2022)” Adjustments should be
made regarding applicability to accommodate the differences between
professional astronauts and non-professional tourists. Member states
of the International Space Station have established criteria for non-
professional tourists who enter the station. Therefore, further
discussions are needed within the international community to
determine the legal status of space tourists.

7.3.2 Lack of Targeted Legislation


Currently, except for the United States, most countries capable of
developing space tourism have established a private outer space
project operating license system, but there are no specific regulations
on how to regulate the risks of civil space activities. The Commercial
Space Launch Amendments Act of 2004 in the United States requires
self-funded space tourists to bear the costs and risks of space tourism
(Hughes and Rosenberg 2005). The legislation also requires tourism
companies to be responsible for the safety of their clients but requires
tourists to ensure they will not sue the US government after an
accident. However, the regulation also mandates space tourism project
initiating companies to purchase insurance and inform tourists of
relevant risks.

7.3.3 Single Liability Subject


In the overall provisions of the Liability Convention, only the issues
related to national liability are regulated, such as the responsibility of
states for the outer space activities of governmental or non-
governmental entities, which deviates from traditional international
law (Dempsey 2016). Does this mean that the state is also responsible
for ground damage caused by space tourists? This seems unreasonable
for private space tourism. Suppose this factor leads to the reluctance of
countries to undertake outer space launch activities. In that case,
private entities will face technological and spatial restrictions, which
will also hinder the development of space tourism.
On the other hand, assuming that the primary responsible party for
space tourism projects is the project initiator, as a limited liability
private space tourism enterprise, their ability to provide equity and
compensation protection for investors and space tourists is insufficient.
Without sufficient legal protection, investors and space tourists will
significantly reduce their willingness to participate in space tourism
projects, affecting the long-term development of private space
enterprises (Padhy and Padhy 2021).
Therefore, criminal, tax, environmental, and other related legal bills
applicable to commercial activities in outer space need to be jointly
negotiated by the international community and governments of various
countries after careful consideration. After these bills are formulated
and successfully implemented, the legal rights of all parties involved in
space tourism projects can be more fully protected, such as limiting the
amount of compensation for damages, which should not exceed the
reasonable ability of the responsible party to bear, to prevent the
project initiators or insurance companies from bearing excessive
business risks (Padhy and Padhy 2021).
Regulatory agencies in space tourism projects can guide each
participating party to bear appropriate risks and responsibilities and
seek appropriate insurance and government funding plans through
relevant legislation on the scope of compensation liability. The relevant
legislation applicable to commercial activities in outer space helps to
clarify the relationships,roles and responsibilities of each participating
party in the space tourism business chain (Hermida 2004).

7.4 Recommendations for Private Enterprises


Regarding International Space Tourism
Legislation
7.4.1 Strengthening International Coordination and
Establishing Unified Rules
For private entities in space tourism, the legal differences between
countries will inevitably cause legal conflicts in the future and thus
require international legal regulations. As space tourism is a relatively
new industry, countries involved in outer space development should
actively cooperate and jointly establish common rules for developing
space tourism. With the increase of space commercial activities and
exposure in 2021, the era of space tourism arrived much faster than
expected, driven by human curiosity for adventurous travel and the
economic motivation to create a space industry (Kulu 2021). It is
important to note that as more space commercial activities are carried
out, the quantity of spacecraft, orbital satellites, and space debris also
increases, and the usable space in outer space gradually decreases. For
instance, when space capacity reaches a certain threshold, it will
increase the operational risk factors for spaceborne vehicles, such as
spacecraft or satellites in orbit. This increase indicates a higher
probability of collisions or frequency interference. If these issues are
not regulated, they could hinder the development of space tourism
commercial activities and pose unknown risks and challenges related to
international politics, economics, and military issues.
To ensure the exchange of market information and safe space flight
for space tourism projects, spacefaring nations must continue to
research and develop policies, laws, propulsion engineering, and
medical pharmaceuticals, among other related fields in space, to
increase the safety and feasibility of space tourism projects, which can
reduce legal conflicts to a certain extent. Regarding space tourism
commercial laws, each country has its laws concerning space, which
will lead to legal conflicts (Meeks 2014). Coordination and resolution of
these legal conflicts require international unified judicial rules, as well
as close cooperation and active discussions between spacefaring
nations to establish international legal regulations for space tourism
commercial activities. At the same time, international organizations and
spacefaring nations need to establish a strict licensing and certification
system for space vehicles, which would assure each participant in space
tourism projects of sufficient safety measures. In addition, experienced
spacefaring nations can guide the development of other countries'
space laws, helping to establish unified traffic regulations for
international space commercial activities and promote the
normalization and legalization of space tourism commercial activities.
For example, countries could clearly define the launch, reentry
authorization, and compensation liability issues and identify the
project initiators as the primary responsible party.
While formulating space law regulations, it is also necessary to
consider each country's interests. Through learning from each other’s
reasonable proposals and ideas, every country’s legal rights can be
adequately protected (Jakhu 2006). For instance, spacefaring nations
should actively participate in developing legislation regarding
commercial activities at international space stations and promote the
establishment of international mechanisms for outer space, as they are
leading the way in global advanced space technology. By establishing
international space laws, spacefaring nations can also guide other
countries to promote international cooperation, conduct relevant space
research and exchange activities, and help other countries achieve
progress in space technology. For instance, spacefaring nations could
work together to construct a space data sharing and exchange center or
share advanced technology for recycling space operating equipment
with other countries' space technology centers to improve the
efficiency of utilizing space, reduce space debris pollution, and
contribute to sustainable development through space law regulations.

7.4.2 Legal Issues of Space Tourists Under the Outer Space


Treaty
Like astronauts, space tourists also bear the task of being envoys of
outer space, representing all of humanity to visit space and thus
establishing the principle of risk-sharing in space tourism, allowing
space tourists to enjoy equal legal status as “astronauts.” The space
tourism operator should be responsible for ensuring and determining
the liability of space tourists to protect the healthy development of this
emerging business (Martin and Freeland 2022). In addition to
experiencing the microgravity environment and the magnificent
scenery along the way, space tourists can also participate in daily
scientific research work like astronauts. Although space tourists
primarily seek entertainment, training them as research personnel
capable of conducting scientific research in outer space can cultivate
their interest in scientific work and clarify their role as researchers in
outer space. Therefore, space tourists become participants in research
projects and can enjoy equal legal status and rights as astronauts. It
should be noted that space tourists must fully understand the safety
risks associated with participating in space projects beforehand and be
aware that the insurance company and the tourists themselves will
bear the primary responsibility for any harm suffered by space tourists
during their participation in the project.
Regarding attribution of responsibility, if the testing center of a
space tourism project is not satisfied with the physical condition of a
space tourist, they should explain the situation to the tourist in detail.
Suppose a space tourist insists on participating in the project despite
knowing their physical condition is not ideal. In that case, the tourist
should be required to read and sign a waiver, waiving their legal rights
and accepting all potential harm and losses, including property damage,
death, and other possible losses caused by potential risks (Bensoussan
2010). If accidents occur due to the space tourist's physical condition,
the project initiator should be exempt from the main compensation
responsibility. However, suppose the harm suffered by space tourists
during their participation in the project is due to the negligence of the
project initiator. In that case, the company should bear the primary
responsibility and provide appropriate compensation for any harm the
tourist suffers.

7.4.3 Implementing the Rescue Agreement for Space


Tourists
As stipulated in the Outer Space Treaty and the Rescue Agreement, the
term “rescue objects” refers to astronauts, cosmonauts, and space
vehicle crew members (Hobe 2007). While space tourists are not
included in this category of rescue objects according to the literal
interpretation of the treaty provisions, entirely excluding this category
from the rescue list would be inhumane from an international
perspective and detrimental to the development of the space tourism
industry. Some developed countries have gradually initiated
international cooperation and exchanges in space tourism technology
regarding pre-flight training and guidance for non-professional
astronauts. In recent years, space technology centers in Canada and
Japan, among others, have jointly formulated standard rules for space
tourists to visit and tour the International Space Station (Ferreira-
Snyman 2014). Non-professional tourists must pass a series of targeted
professional training and tests by experts at space technology centers
before qualifying to board space tourism flights. The training content
includes tests of abilities such as high-gravity flight, medical treatment,
psychological adjustment, and communication skills. During their
journey in space, space tourists must adapt to the high-pressure
environment and maintain a calm and clear-headed attitude to deal
with unforeseen situations. This type of professional training elevates
the role and abilities of space tourists to be closer to those of space
vehicle crew members, enabling them to be equipped with basic coping
abilities to help themselves or their companions in tackling difficulties
and ensuring the safety of both spacecraft and flight passengers.
Therefore, to adequately address the rescue issues for “space tourists”
in the event of accidents or disasters, the existing Outer Space Treaty
and Rescue Agreement should expand the scope of rescue operations to
include “space tourists” to guarantee their basic personal safety in such
circumstances.

7.4.4 Adjusting National Responsibilities and Promoting


Fair Competition with Private Enterprises in Outer Space
The existing Outer Space Treaty stipulates that countries bear
international responsibility for damages caused by their launched
objects (Lampertius 1991). However, with the rapid development of
space tourism, the issue of damages that may be caused needs to be
addressed by implementing a principle of commercial compensation as
the primary form and national compensation as the subsidiary.
Following market development trends, it is crucial to actively promote
the growth of commercial space tourism insurance, with insurance
companies assuming primary compensation responsibilities. Regarding
suborbital space tourism ventures, regulatory bodies must clearly
define the categories of compensation liability systems, as the
standards applicable to aerospace flight and those for outer space flight
differ significantly. Furthermore, there is currently no universally
agreed-upon solution to the issue of spatial boundary delineation and
the starting point of outer space, which may pose potential regulatory
gaps in ensuring the safety of space flights and space tourists. Against
this backdrop, commercial activities in outer space will face additional
unknown legal obstacles.
Commercial activities in outer space are primarily profit-driven,
with space tourism project initiators receiving compensation from
space tourists’ tickets by transporting them to outer space or space
stations (Le et al. 2023). However, the exploitable resources in outer
space are limited, and without relevant legal constraints on commercial
activities in outer space by countries, monopolies in outer space could
easily arise. Commercial space companies that develop first could
monopolize the activity trajectory and other space resources in outer
space, limiting the opportunities for new commercial space companies
to carry out business activities in outer space. In addition, these early
aerospace leading companies may manufacture and dispose of space
debris at will to save costs. If no relevant international legal constraints
can effectively monitor and punish such behavior, it would be
detrimental to the sustainable development of space tourism.
Furthermore, outer space resources should not be controlled by a
few technologically advanced countries. These resources should be the
common property of all humanity, and each country’s commercial
space company should have an equal opportunity to develop and utilize
them (Bilder 1980). Other countries can also refer to the US
commercial space law, which encourages private investment in the
space tourism market and establishes a more open and transparent
competition platform for commercial space companies, thereby
promoting the development of commercial activities in outer space.
Additionally, the international formulation of relevant legal systems for
outer space should strengthen cross-border cooperation and
exchanges, with countries uniting and discussing legislation to ensure
that the interests of each country are protected by international outer
space law, allowing space tourism projects of various countries engaged
in commercial activities in outer space to engage in fair competition.
Various countries in the world have set sights on outer space
resources, entering into commercial activities in outer space to exploit
and utilize resources. The competition among these countries is
increasingly intense (Haanappel 2006). Developed countries with
advanced aerospace technology, such as the US, Russia, and EU, have
spent significant efforts on legislation in space commercial activities.
They have formulated relatively mature relevant laws and regulations
and possess relevant judicial practice experience to safeguard their
respective legal and legitimate rights and interests in the international
community regarding aerospace technology development. China has
also realized the issues of the lack of legislation in space commercial
activities if it wishes to establish some advantages in space
competition. The challenges are: first, there is a shortage of research
experts and scholars in this field in China, and second, China’s
aerospace industry started relatively late, resulting in less theoretical
research and practical experience in relevant legal systems.

7.4.5 China’s Space Tourism Legislation


To keep pace with the development of China’s space commercial
activities, this study proposes the following suggestions: Firstly, to
address the shortage of research-oriented talent in this field, China
should establish relevant courses within the law schools of key
universities, focusing on legislation related to Chinese space
commercial activities. Additionally, authoritative experts and scholars
in this field should be invited to instruct these courses, thus cultivating
more research-oriented talents to explore legislative issues related to
commercial space tourism in China (Gao et al. 2019).
Secondly, to tackle the lack of theoretical research and practical
experience in legislation for Chinese space commercial activities,
research funding for this field could be established to encourage
research teams of experts and scholars to delve into the subject
(Davidian 2022). Organizing academic forums and exchange meetings
would also facilitate communication and provide substantial research
project bonuses for research teams that achieve significant
breakthroughs. For instance, the Space Tourism Research Foundation
could establish research topics on the management system of space
tourism activities, enabling top domestic research teams to conduct
comparative analysis studies on the existing management systems of
space tourism activities in various spacefaring nations worldwide.
Through data analysis and practical experiences of different countries,
each research team would identify deficiencies and areas requiring
supplementation in China’s existing system, ultimately designing a
more applicable management system for space tourism projects in
China. Finally, the foundation would incentivize research teams that
make outstanding contributions with generous research project
bonuses.
Thirdly, as China’s first space tourism project has yet to be officially
implemented, and private enterprises have a minimal market share in
space commercial activities. China’s space tourism market is suggested
to be led by the government, guide private enterprises, and enhance
cooperation and communication between the government and private
sectors. Private enterprises should be encouraged to acquire necessary
space technology and participate in space infrastructure construction
to accelerate their practical experience (Sergey and Sergey 2019).
The final suggestion is to differentiate between civilian and military
space commercial activities by establishing separate legislative systems
for each domain (Dempsey 2016). This will fully safeguard private
enterprises' and government organizations' legitimate rights and
interests in space commercial activities. This differentiation aims to
develop the future space tourism market into a highly commercial
platform characterized by fair competition, legal compliance, and
information exchange, thereby achieving integrated management of
military, civilian, and commercial space tourism activities. Furthermore,
it will promote developing and improving the legislative system for
outer space commercial activities. By enhancing China’s aerospace
technology and establishing a commercial space tourism market,
regulations, and supervision can be implemented for activities such as
space tourism, utilizing relevant laws pertaining to outer space
commercial activities. To a certain extent, the legislative development
of space commercial activities can also safeguard the legitimate rights
and interests of China’s space tourism activities when participating in
international cooperation and exchange projects.
In conclusion, through the efforts of the United Nations Committee
on the Peaceful Uses of Outer Space and enlightened individuals from
various governments, the international community and nations have
successively adopted numerous laws, treaties, and regulations related
to outer space (Marchisio 2005). These have gradually formed a unique
legal framework for outer space, providing a basis for the peaceful and
effective utilization of outer space by humanity. The legislative scope of
China’s outer space commercial activities should include the
establishment of an internationally unified system for spaceflight
licenses, space passenger and spacecraft insurance, rescue and return
systems for astronauts (applicable to non-professional space tourists),
outer space technology transfer regulations, classification systems for
space objects, liability systems for damages arising from outer space
activities, and norms for international cooperation and exchange.
Despite the systematic challenges faced by the existing framework of
outer space law due to the political will of sovereign states and the
interests of relevant stakeholders, there should still be agreements,
organizations, and supervisory bodies similar to the United Nations
Climate Change Conference that scrupulously study the international
legal system in the field of outer space from a global perspective. This
will facilitate the improvement of the legal framework and promote the
peaceful utilization of space activities, which is of significant
importance for the development of space tourism.

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© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_8

8. Space Medicine
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

Since Yuri Alekseyevich Gagarin’s first human space flight in 1961, over
560 people have completed space flights (Stepanek et al. 2019). Most of
those eligible for space flight missions are highly trained and carefully
selected astronauts with good physical and mental health, which is one
of the crucial hurdles for space tourism.

8.1 Health Requirements in Space Tourism


Currently, astronauts and other participants in the International Space
Station must comply with the medical certification standards
developed by the US National Aeronautics and Space Administration
(NASA) and its international partners. With the emergence of
privatized commercial space travel, relevant medical institutions are
expected to provide customized space medicine health check for paid
users to ensure that passengers participating in space tourism projects
have good health conditions. Future space companies and their medical
departments, or partner medical institutions, will provide
comprehensive health checks and guidance services for suborbital
flight participants. In the United States, pilots operating various
privately owned commercial spacecraft are required to hold a Federal
Aviation Administration (FAA) Second-Class Medical Certificate and
comply with its associated medical requirements. However, there are
no specific medically binding standards to determine participants’
suitability for space travel (Stepanek et al. 2019). This is still one of the
crucial challenges that needs to be addressed in space tourism.
In the future, there will be space travelers of different age groups
venturing beyond Earth in space flights. Their physical conditions will
vary, and the required physical requirements for space travel will also
differ. For example, Blue Origin’s space tourism project in 2021 served
passengers ranging from the youngest at 18 years old to the oldest at
90 years old. Throughout the execution of space tourism projects,
various factors can impact passenger health. These include the strong
forces experienced during rocket launch and re-entry, as well as
microgravity, space radiation, and other environmental factors
encountered in space orbit(Clément et al. 2020). These factors can lead
to the emergence of acute medical conditions or burden existing health
conditions.
While government agencies focus on space technology development
in the space sector, advancements in space technology have also
accelerated with the increasing research capabilities of private
spaceflight organizations. This expansion significantly augments the
scale and value of the space economy. As the number of space tourists
rises, the significant commercial value of space health and medical
services becomes increasingly evident(Connell 2006). Additionally,
medical research conducted in space environments can enhance
disease prevention and control capabilities and present potential
opportunities for developing new drugs. Regarding space travel,
providing medical services to crew members before, during, and after
flights can accelerate the development of the emerging space health
industry. This field of space medical innovation has become a strategic
industry worthy of consideration for countries developing the space
industry.
Space tourism will progress from short-duration space flights to
longer-duration space stays and may even achieve long-term journeys
such as colonization. SpaceX has announced plans to send humans to
Mars by 2030, with a minimum flight duration of 9 months (Kaku
2018). Various health-related issues concerning crew members must be
carefully considered in response to appropriate strategies to pick up
qualified space tourists.
On October 16, 2021, at 00:23, the Long March 2F Y13 carrier
rocket, carrying China's Shenzhou-13 manned spacecraft, successfully
launched from the Jiuquan Satellite Launch Center. Astronauts Zhai
Zhigang, Wang Yaping, and Ye Guangfu, as the second group of crew
members to enter the Chinese space station “Tiangong”, embarked on a
six-month mission of space research and daily living, setting a new
record for the duration of Chinese astronauts’ stay in space. Wang
Yaping is the first female astronaut to enter the Chinese space station
and the first female astronaut to conduct extravehicular activities.
Suppose the crucial mission of space stations is to prepare for
expanding human habitat boundaries. In that case, it is imperative to
have the participation of both men and women who represent samples
on Earth. The physiological issues of female astronauts encounter in
space at this stage will serve as medical examples, promoting
advancements in space medical technology and laying a solid
foundation for providing medical support to future female astronauts
or space tourists living in space (Clément 2011).
Research findings show that, physiologically, women are considered
more suitable for long-term living in space (Palinkas 2001). They have
more body fat, shorter average height, lighter weight, and consume less
energy through aerobic exercise. Women have higher estrogen levels,
magnesium metabolism, and lower iron content, reducing the
likelihood of iron poisoning, vascular spasms, or thrombosis. Regarding
mental state, women tend to be calmer and more stable than men. To
accommodate the physiological characteristics of women, the
Tianzhou-3 spacecraft provided female astronauts with sanitary
supplies and a small amount of non-toxic cosmetics. The equipment
and facilities, such as the seating and suits, were also customized for
females, and the height distance of the waste collection system was
adjusted.
Practical experience has shown that during aerospace flights,
female astronauts did not experience abnormal menstrual cycles
(Strock et al. 2023). However, during menstruation, they are
susceptible to decompression illness if they engage in extravehicular
activities, mainly due to decreased overall blood volume. The practice
of space medical technology for female astronauts is a promising
attempt. To provide more opportunities for space travelers with
different physical conditions to participate in future space tourism
projects, it is essential to promote innovative space medical technology,
which fosters space tourism development.

8.2 Concept of Space Medicine


The global health sector has been innovating for many years and has
achieved specific accomplishments. For example, it is using remote
sensing technology to detect environmental changes that significantly
impact local population health, utilizing satellite communication for
medical work and natural disaster management, and advancing medical
knowledge through space medical programs. Space medicine serves as
the foundation for human exploration of space, supporting human
survival, body functionality, and working performance in space's
challenging and potentially lethal environment. It operates on an
international, cross-cultural, and interdisciplinary level at the
boundaries of exploration, science, technology, and medicine
(Hodkinson et al. 2017).
Various diseases will affect the health of astronauts in space, and
the spacecraft's sterile state and environmental pressure will cause
changes in the gut microbiome, leading to potential immune system
suppression. When the functionality of the immune system is altered,
the ability to recognize antigens, defend against foreign invaders, and
coordinate repairs will be significantly hampered. Scientists examining
astronauts stationed in space have observed changes in immune cell
function, changes in skin microbiota, and increased susceptibility to
toxic bacteria due to the enhanced toxicity of pathogens under
microgravity conditions (Saei and Barzegari 2012). Therefore, anyone
with congenital diseases or compromised immune systems should be
cautious about spaceflight (Ludtka et al. 2021) to avoid easily getting
sick. During spaceflight, fluid redistribution occurs in the intravascular
and extravascular compartments due to weightlessness, which triggers
cardiovascular, cardiopulmonary, and autonomic nervous system
responses, possibly due to cellular-level changes. The cardiovascular
system is particularly affected by air travel. Endothelial cells are
thought to be the source of many cardiovascular diseases and are
stimulated in a thermoregulator-induced microgravity environment
(Balasingam 2018). The change in the functional state generated may
result in orthostatic hypotension and intolerance upon landing and
returning to the gravitational environment. Negative pressure in the
lower body during flight can temporarily restore normal fluid
distribution, which has been studied not only as a cardiovascular stress
test during flight but also as a countermeasure to cardiovascular
deconditioning on the Soviet space station, Skylab, the space shuttle,
and used as a countermeasure for the completion of the Russian
International Space Station project (Berry et al. 2009).
Space medicine is not only used for space missions and space travel
but also for many other health fields, as witnessed by the United States,
China, Russia, and many other countries around the world over the past
few decades. Prolonged confinement can cause muscle mass to decline
at a faster rate, and bodily fluid flows toward the head, impacting the
normal operation of bodily functions under microgravity (Goswami
2017). Researchers are taking a series of measures to reduce or even
solve these effects, including having astronauts wear negative pressure
devices to control fluid flow and developing a potassium-citrate drug to
address the risk of kidney stones (Baran et al. 2022). Threats in the
space environment vary depending on the duration of flight time.
Recording human data in space and utilizing this data for related
research will aid in the preparation of humans for future long-duration
deep space exploration missions. Humans may land on Mars within the
next decade, with even the shortest flight time taking nine months.
During this period, the impact of the space environment on human
physical and mental health is significant. Without adequate medical
research, humans will find it difficult to survive and continue to prosper
in long-term deep space environments.

8.3 Effects of Space Environment on the


Human Body
On April 16, 2022, China’s Shenzhou 13 spacecraft successfully
completed its 183-day mission at the Tianzhou Space Station and
returned to Earth. Following their return, the crew members of this
mission undergo a six-month-long period of medical rehabilitation
known as “prolonged post-flight recovery.” During space missions,
astronauts face various risks associated with the space environment,
including muscle atrophy, vision impairment, immune system
dysregulation, bone density loss, vascular aging, and other effects of
microgravity. Additionally, immune system dysregulation may lead to a
state of immune cell “paralysis”, while space radiation can compromise
the immune cell populations, resulting in reduced overall immune
function. Therefore, specialized medical isolation is a necessary
protocol (Crucian et al. 2014) The impact of space environment factors
on humans is outlined as follows:

8.3.1 Space Radiation


In the space environment, the absence of atmospheric and Earth’s
magnetic field protection exposes the human body to higher levels of
radiation. Osteoclast activity increases rapidly but transiently due to
the absence of gravity, leading to bone resorption. Prolonged exposure
to microgravity inhibits bone formation, resulting in long-term skeletal
defects (Willey et al. 2011). The radiation environment in space
primarily consists of protons, electrons, and heavy ions. Therefore, in
the design of spacesuits, engineers must consider the total dose of
radiation that passengers may experience and incorporate protective
mechanisms to mitigate the harmful effects of radiation on the human
body. This involves selecting materials and components with specific
characteristics to enhance protection and prevent radiation-induced
harm.
8.3.2 Effect of Weightlessness
According to current research, weightlessness is the primary factor
affecting human health during flights in near-Earth orbit, and
astronauts may experience a series of problems, including muscle
atrophy, osteoporosis, anemia, cardiovascular dysfunction, and immune
dysfunction. Fortunately, these changes are reversible, which means
that astronauts can recover to their pre-flight status after returning to
Earth following a period. A weightless environment also increases the
risk of astronauts developing osteoporosis; thus, they need to take in a
small amount of diphosphate each week. Chinese scientists have been
used the microgravity environment provided by the Tianzhou-1 cargo
spacecraft to test a particular osteoporosis intervention drug developed
for astronauts to assess its effectiveness in real space, potentially
benefiting the general public in the future. Research has found that
diphosphate also benefits middle-aged and older people on Earth who
are at risk of osteoporosis (Gennari 2001). Therefore, scholars suggest
that private companies and medical institutions establish medical
permits for potential space tourists (Caetano 2019) to ensure their
health status during space travel. Many medical technologies designed
to help astronauts adapt to the space environment, such as
microgravity, radiation, and confinement, are widely used on the
ground and provide a unique testing opportunity for preventing and
treating diseases.
The construction of the International Space Station (ISS) has
confirmed early observations on the effects of microgravity on
astronauts’ health during short-term space flights. Space medicine
seeks to understand the mechanisms of health issues caused by
microgravity. The ISS is collaborating with private enterprises to
advance space research and develop new technologies, studying the
effects of microgravity on the human physiological system. The findings
from these studies enhance our understanding of the human body and
diseases and promote the development of new products and services.
They address health issues regarding the commercialization of near-
Earth orbit activities, addressing potential health problems during
space travel and providing a novel medical research environment and
medical issues (Hodkinson et al. 2017). The space station's mission is
challenging and complex, with orbital flights lasting from three to six
months. Training astronauts and ensuring their well-being under the
conditions of effective load are significant challenges. Maintaining good
health and high energy levels are crucial for astronauts to sustain long-
duration work and life in space. During space flights, astronauts
experience various environmental working conditions such as
vibrations, noise, loss of gravity, and rotational impacts. They work and
live for extended periods in a complex, unique environment
characterized by confinement, airtightness, isolation, and noise. This
environment makes them prone to develop negative emotions such as
irritability and depression. Therefore, maintaining physical and mental
well-being is critical in the space environment.
Previously, aerospace medical experts have conducted many ground
and space experiments to preliminarily understand the effects of
weightlessness on the human body (Hinkelbein et al. 2020). In order to
study the changes in muscle atrophy under long-term weightlessness
and the effectiveness of protective measures, research projects were
specifically established for the Shenzhou-12 space mission. Aerospace
medical experts have conducted multiple tests on the Shenzhou-12
astronauts, providing rich experimental data for in-orbit muscle
atrophy research. They have also combined in-orbit biomechanics
research to establish, for the first time, mathematical simulation
models of human movement under weightless conditions, providing
important basis for optimizing and improving China’s future
weightlessness protective measures. Collecting data on the
biomechanical changes in the lower limb muscles of astronauts during
running or cycling can more accurately evaluate their muscle function.
Although medical experts have found some measures to restrain and
reduce the impact of weightlessness on astronauts’ health, some
medical problems still require continued research to achieve
breakthroughs. For example, astronauts’ vision gradually deteriorates
after extended periods in the space environment, and without timely
intervention, it will not be restored to its original state. Studies have
indicated ocular changes that occur when astronauts enter a
microgravity environment. Other symptoms, such as increased
intracranial pressure, neurological changes, biochemical changes, and
lymphatic and venous circulatory disorders in microgravity
environments, may all contribute to the onset and progression of
diseases. Therefore, space medicine requires a comprehensive medical
solution that includes screening, training, and prevention and
treatment measures for travelers.

8.3.3 Long-Term Effects


After a 6-month mission on the International Space Station (ISS), seven
astronauts experienced ocular changes, including disc edema, flattening
of the posterior globe, choroidal folds, cotton wool spots, thickening of
the nerve fiber layer, and myopia progression. Visual impairment due to
intracranial pressure syndrome (VIIP) is considered a major risk for
future human spaceflight. The mismatch of intraocular or intracranial
pressures caused by the loss of gravity-related hydrostatic pressure
gradients in the vasculature and cerebrospinal fluid system, associated
with subsequent fluid shifts, may be an important contributing factor to
the development of visual impairment intracranial pressure syndrome.
During long-term microgravity exposure, the adaptive changes and
underlying mechanisms of ocular and cerebral circulation, and the two
fluid systems need further elucidation (Zhang and Hargens 2014).
In addition to whole-body experiments, cellular-level research is an
indispensable part of aerospace basic medical research methods.
Cellular methods in aerospace basic medical research are based on cell
cultures under microgravity or simulated microgravity conditions.
Researchers use microscopes to observe cell growth, the cell cycle, and
changes in various cellular organelles. The experimental conditions in
aerospace basic medical research share similarities with general
medical research, but they also present unique environmental
conditions that cannot be replicated on the Earth’s surface. In the past,
a significant amount of research could only be conducted under
simulated microgravity conditions on the ground. With the
establishment of the Chinese Space Station, several topic-oriented
experiment racks have been set up. Among them, the Human System
Research Rack, Life and Ecology Research Rack, and Biotechnology
Experiment Rack all support the development of cell-based research
(Zhang and Hargens 2014).

8.4 Space Medical Applications


Since the release of the Guidelines on Innovative Investment and
Financing Mechanisms to Encourage Social Investment in Key Areas by
the State Council of China in 2014, followed by subsequent supporting
policies, social capital and private enterprises have entered the
aerospace sector, creating opportunities for the commercialization of
space medical services (Wang et al. 2019). This facilitates the full
utilization of the market-oriented and specialized advantages of social
capital, accelerating the implementation of innovative investment and
financing models in space medicine. Chinese space medicine research
can invite domestic and foreign enterprises and medical institutions to
share experiences, gather wisdom, inspire ideas, and collaborate on
international cooperation.
Current research achievements have shown that aerospace
cardiovascular and pulmonary function technologies can increase the
survival rate of cardiac arrest patients to 50%, and composite
thermoplastic resins can improve the success rate of synchronous
cardiac treatment to 96.4%. Additionally, invisible braces made from
space material “polycrystalline alumina” have become a popular choice
for teeth correction. The combination of “space technology + health
applications” can effectively address the growing health demands of the
population. Encouraging the commercialization of space medical
services and conducting orderly medical mutual assistance can meet
the increasing demand for space medical security (Zhang and Hargens
2014).
Space development, the actual application of spacecraft capabilities
and data collected from space, is developing in parallel with space
exploration. There are two general types of space applications. One
type provides public welfare public goods, which cannot be easily
marketed to individual purchasers and is typically provided by
governments using public funds. Examples of public welfare space
applications include meteorology; navigation, positioning, and timing;
and military and national security purposes. The other type of
application provides goods or services that can be sold to purchasers,
and profits can be generated from them. These applications are the
foundation for the private sector commercialization of space. Examples
of existing commercial space applications include various forms of
telecommunications and data transmission via satellites, earth-surface
remote sensing, and space commercialization development, such as
space tourism and corresponding space medical services, and
commercial development of maintaining health in a microgravity
environment will soon emerge in the future (Kodheli et al. 2020).
In future planetary exploration, astronauts may inhale toxic lunar
and Martian dust, which can lead to airway inflammation. Measuring
exhaled nitric oxide (NO) can diagnose airway inflammation and
monitor pulmonary health (Linnarsson and Karlsson 2020). A smart
sensor system approach and the application of this technology to
human health respiratory monitoring have been developed and can be
used not only for space travel, but also for developing a solid-state
nitric oxide (NO) sensor for asthma monitoring. This technology has
been clinically applied in diagnosing and treating asthma patients
(Hunter et al. 2011).
Human space exploration can also be revolutionized by 3D printing
technology. The current supply mode can be transformed into a ship-
manufacturing mode, and medical care equipment managed by the
crew can provide medical support using 3D printing technology,
striving to minimize the consumption of spare medical materials and
significantly expand medical capabilities during flight. This plan has
become an essential technological means in advanced space equipment
manufacturing and repair (Wong 2016).
In April 2022, SpaceX completed a fully private-supplied,
intermediated, and consumer-oriented spaceflight, with the space
tourists spending eight days on the International Space Station (ISS).
This new era of space exploration signifies the need for enhanced
medical facilities and diagnostic capabilities on the ISS. Currently, a
bidirectional ground-to-space communication system has been
established between radiologists in the astronaut and mission control
centers to ensure that operational astronauts can generate diagnostic
images under remote guidance. Some telemedicine services being
researched include eye examinations, ultrasound scans for focused
trauma assessment, and musculoskeletal examinations. These
advancements may also benefit future space travelers (Cole 2008).
The use of point-of-care ultrasound has rapidly expanded since the
introduction of Focused Assessment with Sonography for Trauma
(FAST) as a bedside evaluation tool for trauma patients. Increasing
literature suggests that non-radiologists can utilize ultrasound as an
extension of physical examination to diagnose or exclude various
conditions accurately. These conditions include but are not limited to,
pneumoperitoneum, pneumothorax, pulmonary edema, long bone
fractures, deep vein thrombosis, and increased intracranial pressure.
With ultrasound machines becoming smaller and more portable, their
scope of use has extended beyond hospitals, as there may be limitations
in diagnostic capabilities and access to medical imaging in specific
environments, including space. Researchers have conducted several
studies utilizing focused ultrasound imaging to address the diagnostic
challenges in space medicine (Wagner et al. 2014). Remote guidance
techniques have been developed to allow non-clinicians to perform
complex ultrasound examinations on the International Space Station,
enhancing clinical diagnostic capabilities (Mercado-Young et al. 2010).
It enables non-professionals to acquire data without on-site expertise
or real-time support autonomously. Further advancements in this
technology should be encouraged in space tourism to improve
autonomous medical capabilities in isolated or underserved
environments.
A novel video clarity enhancement technology has been developed
for ocular abnormalities in space operations. An eye-tracking system is
utilized to locate visual attention, and techniques such as wavelet
domain denoising and enhancement are employed to improve image
clarity (Liu et al. 2011). The current advancements have made imaging
of the choroid layer in space feasible, as optical coherence tomography
(OCT) imaging provides clear visualization of the retina and the
subretinal layers, primarily targeting retinal diseases. It can be used for
diagnosing and monitoring choroidal nevi and tumors, thus improving
the detection rate of choroidal melanoma (Moisseiev et al. 2016).
Hyperspectral imaging (HSI) combines spectroscopic and imaging
techniques to simultaneously acquire two-dimensional spatial
information and one-dimensional spectral information, forming a
space-resolved spectral image that can provide diagnostic information
on tissue physiology, morphology, and composition (Imani and
Ghassemian 2020). Some researchers have discussed pre-flight
diagnosis as a method of estimating the functional state of organisms.
Notably, this has been applied for the first time in space medicine under
the long-term effects of stressors (including microgravity), which is
unusual for terrestrial biology. The method has been widely accepted
and used in various fields of medicine and physiology. Health is seen
here as an ongoing process of organism adaptation to environmental
conditions (Prysyazhnyuk et al. 2017). The health of astronauts is
monitored based on the normative and pathological evaluation of
human functional states. Functional status is nominally referred to as
the “health traffic light,” and preventive measures can still be taken
before contact with the medical system (Baevsky et al. 2015).

8.5 Exploration of New Approaches in Space


Pharmaceutics
Space pharmacology involves using spacecraft such as retrieval
satellites and manned spacecraft to transport therapeutic
microorganism strains into space. These strains undergo genetic trait
variations under the influence of space-specific environmental factors
such as high vacuum, intense radiation, and microgravity. Following the
return to Earth, researchers then conduct ground-based screening to
select beneficial strains, ultimately cultivating new drugs (Tran et al.
2022).
Under microgravity conditions in space, the gravity sedimentation
of cells in fusion fluid disappears, which can enhance the cell viability of
electrofusion hybrids. Using these environmental conditions that are
difficult to achieve on the ground can produce unique and expensive
drugs, among other possibilities. Many pharmaceutical companies
worldwide collaborate with space enterprises to research drugs or
methods for treating cancer, diabetes, emphysema, and immune
dysfunction (Griko et al. 2022). China’s space life science research is
just beginning in the pharmaceutical field, especially in the field of
biopharmaceuticals, but has broad prospects for future applications.
Multinational pharmaceutical companies such as Merck (MSD),
Amgen, and Medtronic have conducted drug and medical device
experiments at the International Space Station. Among them, Merck
utilized protein crystallization research in space to improve the
formation and delivery of immune checkpoint inhibitors, leading to the
development of the anticancer drug pembrolizumab (marketed as
Keytruda). Amgen, on the other hand, developed the osteoporosis
treatment “denosumab” (marketed as Prolia) by testing cell monoclonal
antibodies that inhibit bone resorption within animals aboard the
International Space Station (Lloyd et al. 2015). Amgen expanded the
use of denosumab (marketed as Prolia) to include rheumatoid arthritis,
glucocorticoid-induced osteoporosis, male osteoporosis, skeletal
damage caused by cancer (multiple myeloma), prevention of bone
metastasis in breast and prostate cancer (denosumab) (Lewiecki
2018). These examples demonstrate the utility of the microgravity
environment for molecular testing in drug development (Scott and
Vonortas 2021).
In China, Beijing Dawn Aerospace Bio-Tech Co., Ltd. is a space civil
key enterprise initiated and established by the China Academy of Space
Technology under China Aerospace Science and Technology
Corporation. Since its establishment in 1997, the company has
launched various health products such as Astragali Radix Moslae Herba
Saccharomyces Cerevisiae Oral Liquid, Yiyakang tablets, Tangdingkang
tablets, Collagen Glucosamine Chondroitin Calcium Tablets, Soybean
Isoflavones Collagen Calcium Tablets, and Multi-vitamin & Mineral
Capsules.
Space medicine's innovation in human health has brought about
significant business opportunities (Cinelli 2018). However, improper or
exaggerated commercial practices have also negatively impacted it. On
June 4, 2015, the Ministry of Commerce announced that Beijing Dawn
Aerospace Biotechnology Co., Ltd. obtained a direct sales license. Before
this, Dawn had been the subject of adverse reports and media attention.
Regulatory authorities pointed out that some unscrupulous operators
illegally promoted and sold products through seminars, conferences,
and other forms, using so-called “experts” to lecture on unrealistic
“health” concepts, exaggerating the efficacy of health products, and
misleading and deceiving middle-aged and elderly consumers. The high
prices of these products have led to a negative impact on society. From
inspections to product sales, the distributors can provide so-called
“health maintenance plans” regardless of the inspection results. These
“plans” combine different Dawn products based on the nine human
body systems. In addition, there have been cases involving government
officials and medical personnel among Dawn distributors, which have
affected social moral standards and violated professional ethics.
Correcting these excessive commercial practices in the space medicine
industry is essential to truly serve humanity's health and well-being.

8.6 Existing Problems and Future


Development of Space Medicine
Exploring the future of the space sector will help companies prepare
their strategies and corresponding resources. Commercialization is the
mainstream and inevitable trend of future space development.
Therefore, introducing social capital and market-based mechanisms
into the space sector will be the natural choice for this new era of space
activity (Hampson 2017). Currently, there are the following problems in
space medicine:
1. Research gaps: Since most of the early research focused on basic
medical research, there are still many gaps in clinical space
medicine research (Barratt and Pool 2008). In particular, long-term
on-orbit space disease research and diagnostic criteria, treatment
systems, and emergency response systems for space diseases have
not yet been established.

2. Unique space medicine system: Due to the uniqueness of space, the


composition of the human disease spectrum, understanding and
standards of disease status, and formulation and selection of
disease treatment plans have essential differences compared to
ground treatment systems. It is impossible to apply the
understanding, diagnostic criteria, and treatment plans of diseases
from the ground status to the space environment.

3. Integrated medicine system: Integrated applications can meet the


needs of short-distance and short-duration manned space missions,
but each technology has its limitations, such as poor anti-
interference ability, unstable detection performance, and inability
to rapidly and accurately complete large-scale specimen testing.
4. Talent development faces challenges. The core of space medical
development lies in talent; the reserve of high-level leading and
innovative human resource is crucial. In some professional fields,
there is a “gap” in the talent team of leading science and technology
at the old, middle, and young levels.

Currently, China has established good cooperative relationships and


conducted substantive collaborative projects with international
medical institutions, teams, and relevant universities, including the
Institute for Biomedical Problems of the Russian Academy of Sciences
(IBMP RAS), the National Aeronautics and Space Administration
(NASA), and the European Space Agency (ESA) (Nicogossian et al.
2016). A series of equipment and space medical experimental devices
have been developed to enhance the capacity for space mission support
and the technical system and platform construction for space medical
experiments. This has laid the technological foundation for space
station construction, and long-duration manned spaceflight missions,
with some projects showing promising prospects for application in
public health services on the ground. Based on China’s current
technological foundation and space station construction plans, for areas
of specialized expertise, on the one hand, it is possible to attract and
explore advantageous projects and conduct research. On the other
hand, taking a leading role and providing external services can enhance
practical benefits and expand the influence of manned aerospace. For
areas where specific technological gaps exist, the space research
platform can be utilized to actively introduce advanced technologies,
engage in collaborative development, rapidly enhance platform
capabilities, and achieve significant development strides.
Space life science and space medicine have encountered
unprecedented development opportunities. The experiences of
astronauts in space exploration have also catalyzed the advancement of
space health and medical technologies. Specific levels of care must be
established for each commercial manned spaceflight scenario, similar
to the unique medical requirements outlined in the guidance provided
by NASA, which consider factors such as flight conditions and duration,
crew size, and onboard personnel training. The care standards for
commercial manned space transportation will differ from those of
civilian aviation regulations and NASA’s practices. While neither NASA
nor civilian aviation applications directly address all commercial
aviation needs, relevant consensus has been discussed from both for a
while. The entry of private companies has made the previously
government-led space exploration sector more effective (Solomon
2017). In fact, since the first human astronaut, Yuri Gagarin ventured
into space, health and medical advancements related to space
exploration have been significant driving forces for human health and
medical standards, such as the development of technologies like
medical CT scanners and artificial hearts. In the future, as
biotechnology and space exploration become more enriched, space
health and medicine will become increasingly crucial for improving
human health and medical capabilities. Space tourists face a range of
unknown health risks. New medical research is needed to understand
the risks non-professional space travelers face, also known as “space
tourists,” when entering space. New remote physiological monitoring
can reduce health risks for tourists. We believe that, shortly,
commercial aviation will become increasingly popular, and research
will lead to rapid advancements in our medical sciences. As humans
continue to explore and visit space, it will also provide profound
insights into our origins and the future of space medicine.
Research in the field of space medicine brings three benefits to
humanity. First, it enables the development of new biotechnologies by
utilizing the unique environment of space. Second, it enables an
understanding of the effects of the space environment on the regularity
of life activities, leading to the discovery of new knowledge and
phenomena in life science. Third, it facilitates research into the origins
and evolution of life, providing fundamental insights for human
development and the future (Shirah et al. 2023).

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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_9

9. Space Debris
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

As the number of satellites in earth's orbit continues to increase, space


debris will eventually pose a severe hazard to near-Earth space
activities if they are not well monitored and controlled. An estimated
900,000 pieces of space debris are floating in space, including old
satellites and tools discarded by astronauts. Effective measures should
be taken to mitigate this hazard (Venturelli and Velasco 2011).
Generally speaking, if an on-orbit spacecraft collides with space debris
larger than 10 cm, it will be disastrous. This space debris often makes
the flying spacecraft have to take measures to avoid collisions to ensure
their own safety. It sometimes seriously affects the on-orbit missions or
even cause the mission to fail. Space debris management is a global
challenge. In low-Earth orbit at 400 km, it will take several years or
even decades for space debris to deorbit and disappear gradually. With
the continuous development of space science and technology, we
should be responsible for taking action to clean up space debris. For
example, deorbit operations are carried out after the Tianzhou-2
mission is committed following international practice, which can
reduce the amount of space debris and prevent damage to on-orbit
spaceflights (Salter 2015). It can also play an essential role in the
governance of the global space debris environment and avoid
occupying orbital resources.
The disposal of space debris has been analyzed from both
technological and economic perspectives by some studies. For example,
some scholars have introduced and discussed the sources of
uncertainty in long-term predictions of space debris evolution models,
pointing out that the high complexity makes it difficult for space debris
removal. To address the increasingly severe problem of space debris,
research on space debris management technology is actively being
pursued by countries worldwide. The space debris monitoring and
tracking market will reach a scale of RMB 900 million by 2035. Three
leading effective solutions for removing space debris are (1) laser
removal; (2) satellite removal, and (3) combined solutions (Chen
2016b).

9.1 Space Debris Removal Technology


The orbital attitude of satellites or other spacecraft will gradually
decrease under the effect of atmospheric resistance or control system
at the end of their lifespan in low orbit. Satellites or spacecraft will fall
their attitudes rapidly and then re-enter the atmosphere due to the
intensified effect of aerodynamic force when it is lowered to an altitude
of about 100 to 120 km. They will fly at a speed of 8 km per second
under the dual effects of aerothermal and aerodynamic forces, then
gradually disintegrate and ablate. To reduce the fallen risk to the
ground personnel, the standard practice for deorbiting large spacecraft
near the earth is to conduct controlled re-entry instructions to
successfully deorbit and fall into a safe area, which is generally selected
at Point Nemo, an unmanned area in the South Pacific, where is the
farthest point on earth from the land with only a few planes and ships
passing by (Steele 2022). The Soviet “Mir” space station and the
European automatic cargo spacecraft were successfully deorbited and
fell into a safe area through controlled re-entry at the end of the
mission (Pardini and Anselmo 2019). The U.S., Europe, and Japan have
started research on active space debris removal programs. Some key
technologies have been demonstrated in orbit, but the current
development is still far from practical applications.

9.1.1 China Space Debris Removal Technology


China has made great strides in actively removing space debris in
recent years. The following cases show the development of space debris
removal technologies. In June 2016, China launched its self-developed
“Aolong-1” space debris removal spacecraft by capturing space debris
with its outstretched robotic arms. Aolong-1 is equipped with
fundamental functionalities: identification, tracking, and capturing
functions for subsequential on-orbit capture of space debris (Yang
2019). On January 22, 2022, a Chinese “Shijian-21” satellite, one of
China's on-orbit maintenance, assembly, and manufacturing (OSAM)
satellites, unexpectedly changed its position, approaching the
decommissioned Beidou-G2 satellite. A few days later, the Shijian-21
caught Beidou-G2 and altered its orbit. On July 24, 2022, the Long
March 5 rocket carried an experimental module to the Tiangong Space
Station. Most of the Long March 5 wreckage's main body fell to the
ground without control after the mission. The China National Space
Administration stated that the wreck would fall into the atmosphere to
be ablative destruction. The remaining debris fell into the Sulu Sea in
the Pacific Ocean without harm to the ground. However, international
aerospace institutions still advocate for controlled orbiting
technologies to avoid debris disasters (Byers et al. 2022).

9.1.2 The U.K. Space Debris Removal Technology


The UK Surrey Space Centre's Remove DEBRIS project, funded by the
E.U.‘s Seventh Framework Programme (FP7), was launched in 2013 to
collaborate with several European research institutions to remove
space debris. The tasks had been done on-orbit experiments of visual
navigation of space targets, flynet capture, and towed sail deorbit from
September 2018 to March 2019 (Liu et al. 2020), in which space
harpoon can crush larger space debris to the size of which is similar to
a pen. The shredded debris is then collected into the flynet and
deposited to be incinerated in the atmosphere. The U.K. Space Agency
has contracted an industry consortium to clear two spacecrafts from
low orbit by 2025. The industry consortium, led by Swiss start-up
ClearSpace and Japanese orbital debris removal company Astroscale,
has secured around £700,000 ($1 million) in funding and plans to
complete a feasibility study by the end of March 2022 (Pool 2021).

9.1.3 European Space Debris Removal Technology


Europe launched a satellite to test the possibility of cleaning up and
recycling space debris in June 2018. Key technologies tested include a
visual navigation system, nets, and prongs that capture debris, as well
as devices that force the debris to deorbit and fall into the atmosphere.
The European Space Agency (ESA) has commissioned a debris removal
study by the Swiss start-up ClearSpace, which was launched in 2020.
Another spacecraft will be launched to clear a piece of debris in orbit
for the European Space Agency - the Vega Rocket Secondary Payload
Adapter (Vespa) in 2025 (Wormnes et al. 2013).

9.1.4 The USA Space Debris Removal Technology


In 1993, NASA launched the Orion program, which used ground-based
pulsed lasers to remove debris in low-Earth orbit. It uses 30 kW
ground-based lasers to remove 1 to 10 cm of space debris in low-Earth
orbit. Orion shifted its focus from ground-based lasers to space-based
lasers in 2014. Space debris processing can be performed in
geosynchronous orbit (GEO) using smaller optics and lasers (Phipps
2014). The U.S. Air Force's Space Fence program used radar to track
about 200,000 pieces of space debris. The U.S. military giant Lockheed
Martin and Australian optoelectronic technology company EOS signed a
contract to cooperate in tracking space debris, using cave science and
laser technology to search, track, and identify space debris in August
2014. The cooperation includes building a new tracking station in
Australia as a basis for future space debris removal.

9.1.5 Japan Space Debris Removal Technology


The Japan Aerospace Exploration Agency (JAXA) is an institute of
aerospace technology working on an active space debris removal
system that conceptually consists of a small spacecraft. This
microsatellite can be launched on board. The technology can move
large debris from arranged orbits to processing orbits. Such an efficient
orbit transmission system is called Electro-Dynamic Tether (EDT)
technology, which consists of a field emission array cathode (FEAC) that
can utilize carbon nanotubes to emit electrons and a conductive tether
that can collect electrons from the surrounding plasma. This device
could be used to descend the orbit of a space debris removal system
without a propellant (Nakajima et al. 2018). Japan launched the
experimental satellite ELSA-d, designed to test space debris capture
and removal technologies, in March 2021.

9.2 Waste Disposal of Living Garbage


The interior of human-crewed spacecraft generates living garbage,
including solid, liquid, gas, hair, food scraps, and replaced instruments
and parts. In space, a big issue is the solid and liquid waste disposal
that is generated by people. Currently, cargo spacecraft regularly travel
back and forth to space, shipping the required supplies. During the
journey of returning to the ground, people’s living waste in the cabin
will be exhausted and burned directly in the atmosphere. In other
words, these cargo spacecraft are not empty-handed to return to Earth.
On their return, astronauts will load their feces into the cargo ship. The
feces are stabilized and dried by acidic and potent oxidizing substances
before packaging (Kelly 2017) and then become a meteor-like burning
in the atmosphere.
A water circulation system that cost $250 million was delivered to
the International Space Station before the space shuttle, Endeavour,
was retired in 2008. The system's function is to collect astronauts’
urine, sweat and water exhaled into the air, and then purified to
produce drinking water. After testing the water, NASA determined that
the system's operating conditions were satisfactory and the drinking
water was safe to drink (Gott et al. 2021).
There are other potential uses for astronaut or passenger feces. In a
NASA-supported study, researchers at the University of Florida used
astronaut feces to generate methane, further investigating the
possibility of methane being used as spacecraft fuel. The study aims to
use lunar astronauts’ feces to generate biogas as the fuel to drive the
spacecraft back to Earth after a long-term resident base is built on the
lunar surface (Verbeelen et al. 2021). In this way, the astronauts only
need to add enough fuel when they take off from the lunar surface. In
other words, the fuel is converted from people’s own digestive tract and
various microorganisms. Researchers’ experiments found that not only
methane but also water can be produced through converting from
human excrement. Of course, researchers do not intended to use this
water for astronauts’ drinking water but to generate hydrogen and
oxygen through electrolysis as a backup gas source.

9.3 Space Debris Business Opportunities


Dealing with space debris has become a business because it might
harm space satellites and spacecraft. Since space debris has an
externality issue, spacecraft launch agencies should be required to take
possible responsibility. To promote the removal of orbital debris, a
global fund model should be developed to provide business
opportunities since outer space does not belong to any specific country,
according to the Outer Space Treaty. Funding can be collected based on
space debris issues from any national agency involved in spacecraft
launches. Specific percentages of the total cost of various space-related
missions will be collected from all launches before 25 years of future
space activities. About half of the funding will be assigned to business
entities specializing in removing space debris, including private
companies interested in entering the space debris removal market. If
there is policy support, orbital debris removal tasks can be completed
with low risk to form an attractive market. Just like the carbon emission
trading market implemented by countries around the world, although
there are pollution externalities, the issue of space waste can also be
dealt with in accordance with international norms. Considering that
most countries benefit from satellites launched in orbit, it would be fair
to establish a fund that would be paid for or supported by the nations
in proportion to their space activities (Muñ oz-Patchen 2018). In
practice, it is not easy to identify which country or entity should take
responsibility for the space debris removal. This should be treated as a
global concern countries involved should support the funds in a user
charge principle. On the other hand, the cost of existing space debris
removal is relatively high, and no private company can bear the cost
and make a profit from running the business. We can be sure that space
debris removal would not have been possible without the support and
assistance from a global fund, so establishing a global fund is needed to
provide a commercial opportunity for entities to undertake this activity
and form a market for space debris removal, such that we can restore
the space for sustainability.
The budget payment basis for space debris removal is to analyze the
space activities and estimate each country's total expenditure in the
past few years. Using this data from countries, it can calculate the
amount to pay private companies dealing with space debris from the
fund. A forecast model can be developed to predict launch missions’
budgets and collect funds for space debris in the next few years. The
funds are capitalized for space debris removal collected before launch
projects and estimated based on risks and benefits; the funds are
currently roughly 5% of the total expenditure of various space-related
missions (Pelton 2012). Half of the funds will be paid to private
companies to clear space debris. In practice, the appropriate method
for removing different size debris is based on the existing technology,
and the funds mentioned above cover the cost of carrying out the
removal tasks. We believe that the support of international
organizations and government policies will be economically attractive
for businesses to help remove space debris with the externality
problem (Wang et al. 2016). Leaving the clean earth and space for
generations is now our responsibility for sustainability.

9.4 Commercial Operation of Space Debris


Removal
9.4.1 Space Debris Removal Model
The commercial operation model of space debris removal can guide the
space industry chain development with complete international and
national policies. Figure 9.1 shows a model to show how to build a
global space ecosystem from the government to individual institutions,
protect the space environment through policies, laws, and have a well-
developed market for dealing with space debris removal and resource
recycling (Aliberti et al. 2019).

Fig. 9.1 Space debris removal model


First, An International Space Debris Removal Fund should be
established to incentivize private institutions’ involvement (Weinzierl
2018a). The main tasks include planning, organizing, implementing,
and controlling the commercial space debris market operation. Details
of its functions include (1) approving the admission of new member
states; (2) approving the size of the fund and clarification of members’
rights and obligations; (3) discussing significant issues related to the
clean-up of the space environment; (4) approving mitigation of
significant space debris and investment in action plans to remove space
debris with practical actions.
Second, a global governance system should be established to unify
the space debris management proposed by the Outer Space Treaty
(McCormick 2013). All countries should adhere to the principles of
mutual benefit to collaborate on the tasks, share resources, and reduce
the risk for the well-constructed space debris industry.
Third, the policy should support space removal enterprises to
maintain market development. Based on the establishment of the
International Fund for Space Debris Management, professional
companies with technical strength can be hired to carry out space
debris removal operations (Moltz 2011). The fund itself can set up
subsidiary professional technology companies to deal with space debris
issues and clean space on a global scale.
9.4.2 Using Insurance to Pay for the Space Debris Removal
An insurance perspective could be adopted to analyze the space debris
removal business's risks, costs, and benefits. The risks come from the
complicated and unpredicted collisions of space debris. The costs
include companies’ fixed costs and variable costs for operating the
space debris removal business. The benefits include the space debris
fees obtained from insurance companies or the International Space
Waste Fund mentioned above. The insurance annual premiums method
could be applied by the satellite company to cover the costs of space
debris removal using the apportionment method to allocate the fixed
costs each year (Williamson 2018), as indicated in Fig. 9.2.

Fig. 9.2 Space debris removal economic system

(1) The fixed cost that the company allocates each year is C1, then

In the formula, G1 represents the annual apportionment of the


company's fixed assets for cleaning; F1 represents the annual cost of the
spacecraft for space debris removal, including the manufacturing cost
of the spacecraft, the rocket cost, and the launch cost; Z1 represents the
insurance premium of the aircraft.
(2) The annual variable cost of the space debris removal company is
B1, then

In the formula, m1i means the number of debris removed by the i-th
method per year. The company's annual variable cost (that is, the cost
of cleaning debris) is y1i.
(3) The possible insurance payment received by the space debris
removal company every year is P1, then

In the formula, b1 is the odds of paying for an accident. The


insurance indemnity odds vary based on accidents that happened at
different times and the depreciation methods of the satellites or
spacecraft. p1(t) is the possibility of paying insurance indemnity at t.
(4) The company's annual revenue is I1.

In the formula, αI1 is profit;α is the profit parameter. Thus, we


have constructed the financial model, including costs, benefits, and
profits for a space debris removal company (Sinha Roy et al. 2023).
(5) Integrating (1) to (4), the financial model is as follows:

9.4.3 Risks of Space Debris Removal


There are two major risks associated with the disposal of space debris.
First is the risk of operational spacecraft being destroyed by debris or
other objects. The company would need to repair or replace the
spacecraft to continue space debris removal, which could cost a lot of
money depending on the technology and method to perform removal
tasks. The worst case is that the task fails to cause huge losses to the
operational company, which also needs compensation for the damaged
satellites’ owners. Negotiations are necessary for both sides before the
removal operation and after the accident if it happens. Second, the risk
of being space debris supplier is unpredictable. Debris removal has
become extremely urgent over the past few years, but nothing has been
done to implement the tasks. Constraints stem primarily from policy,
not technology, and all space actors currently accept no policies to
advance removal missions. The risk of debris removal is full of
uncertainties (Mark and Kamath 2019). It is believed that the
aforementioned international space debris removal funds and
insurance methods can reduce suppliers’ risks and increase their
income from debris removal tasks to increase the incentives for
enterprises to enter this market.

9.5 The Future of Space Debris Removal


Market
Space debris removal technology has advanced because of the space
issue of sustainability and the economic potential of the business. More
countries are considering the commercialization of space debris
removal but the current international markets and commercial
mechanisms are not yet mature, which hinders the development of the
space debris removal market. Thus, the space debris removal
technology is still in the stage of technical verification and has not yet
entered commercial applications (Chiesa et al. 2015). Once the
commercialization of space debris removal makes progress and profits,
the cost of removal will be continuously reduced to be profitable to
attract international professional companies to join the market.
Risk, cost, and benefit factors should be fully considered for forming
the space debris removal market (Chiesa et al. 2015). The risks of space
debris removal have been mentioned above, including the cost of
removal of spacecraft protection and the main cost of orbital debris
removal. Commercializing space debris removal is the correct way to
solve space environmental problems. It can attract more countries and
enterprises to remove space debris for the sustainability of space. The
space debris removal capacity also represents a country's space
technology and economic power. For example, the team led by
researcher Liu Fucheng of the Shanghai Institute of Aerospace Control
Technology Co. won the second prize in the 2019 National Technology
Invention Award with “Active Debris Removal Micro-nano GNC System
Technology,” aiming for micro-nano satellite capture and removal of
large debris. It is internationally recognized as the most urgent and
effective solution. However, micro-nano satellites’ weight, power
consumption, and size still have technical constraints, and the sensors
and capture devices installed are all facing miniaturization
requirements. The technological breakthrough will demonstrate a
country's scientific and technological strength and competitiveness in
the future market for space debris removal (Dobos and Prazak 2019).

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© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2024
K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_10

10. Space Economics


Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

The commercialization of space technology is bound to significantly


contribute to the economy (Toivonen 2022). A white book, “2021
China’s Aerospace,” has claimed to establish a new development stage
based on a blueprint with new concepts by high-quality products to
promote space science and technology, as well as space applications.
The goal is to catch up with the booming space tourism industry in
Western countries, which can also help promote an innovative space
industry and increase the overall economic output in China.

10.1 Commercialization of Space Tourism


Space science and technology development has shifted from state-led to
cooperation between the state and private enterprises in some
developed countries. For example, the contractual cooperation between
NASA and SpaceX has promoted the commercial development of the
space business. The status of space technology has shifted from state
missions to serving all humankind and promoting the development of
the world economy. China’s aerospace technology is in a leading
position among countries; the total number of launches of national
space missions reached 55 times in 2021, ranking first in the world
(Oniosun and Klinger 2022). However, the development of private
commercial aerospace is still far from some developed countries. For
example, a world-renowned aerospace investment institution’s analysis
of the world’s investment distribution shows that China and the United
States account for the same amount of investment in the start-up stage
of commercial aerospace. However, the proportion of A-round
investment is nearly 50% in China in the highest investment year. The
average A-round investment in the United States is below 20%. The
proportion of B-round investment in China is between 15 and 18%,
while that in the United States is close to 40%. This shows that most of
the investment is invested in technology research and development at
the early stage in China.
In contrast, the United States is mainly invested in industrial
transformation and market development (Lamine et al. 2021). To catch
up with this commercial development gap, China needs government
policy support to encourage state space resources and private capital to
jointly promote the space technology transfer from military to civilian
transformation. The support of national resources and technology
should focus on commercial space innovation; then, it can improve
government resources and investment efficiency and quality for
commercializing the aerospace industry that state-owned aerospace
companies cannot attain. The national teams can focus on long-range
outer space exploration and missions. However, if the private sector
just repeats the work of state-owned enterprises and only participates
in the competition of national tasks at a low cost, the effects of
commercial innovation on the development of the aerospace industry
will be diluted. Therefore, the space missions of commercial space
enterprises should go in a different direction from those of the country
missions. The private sector can adopt innovative commercial
technologies and business models to complement the state space
missions.
Space tourism is a large-scale civilian market that can generate huge
profits. Although the investment cost is high, the returns are also high
for successful cases. Research institutions in the United States and
European countries use different models and methods to analyze the
economic contributions of the space industry. The results show that
one dollar invested in the aerospace industry will generate an economic
multiplier return of 7–12 dollars (George 2019). Manned spaceflight is
included in a systematic space value chain, which composes many
achievements and businesses of modern space technology. Investing in
manned spaceflight means investing in multiple industries at the same
time with high returns. For example, tens of billions of dollars were
invested in the “Apollo” program, which directly started up and
strengthened the development of high-tech businesses such as liquid-
fuel rockets, microwave radar, radio guidance, synthetic materials,
computers, and wireless communications in the United States. Later,
the US government converted more than 4,000 patents obtained by the
program to civilian use, which led to the development of technology
and economic prosperity in the United States (Anderson and Whitford
2021). The development of manned spaceflight can drive the
development of a country’s scientific research and technologies in
materials, electronics, machinery, and chemicals. There have been more
than 1,000 new materials innovated in China in recent years. 80% of
them were developed through the traction of space technology. More
than 2,000 space technology outcomes have been transferred to various
sectors of the national economy.
The initial stage of the space industry development should invest
the necessary resources for survival. It is essential to improve the
profitability of private aerospace enterprises and guide them to develop
in the commercial direction of benefiting the country and the people.
One of the main obstacles to the development of space tourism is the
high cost currently, including the expensive fuel to overcome the earth’s
gravity, the maintenance cost of high-scale spacecraft, and the
operating cost of unconventional equipment in space. Of course,
manned space travel is also costly to protect the safety of tourists’ lives.
Space tourism has been so expensive, as shown in Fig. 10.1, because of
these costs. The pricing strategy of space tourism belongs to luxury
product pricing (Fraccaro et al. 2021). Space tourism commodities are a
seller’s market that has been dominated by space tourism flight
companies, such as Virgin Galactic, Blue Origin, Space X, and other
companies. The sellers can call out ultra-expensive prices but are still
highly demanding by potential tourists (Suschenko and Matthnai
2018). In China, space technology commercialization will also follow
trends like in Western countries. Space tourism, which should go
beyond some developed countries, is only a profit-seeking business that
wealthy people can enjoy. Instead, both civilians and rich people can
have space tourism opportunities, which should be the developing
direction for all the countries that can go into space.

Fig. 10.1 Space tourism pricing


We call the earth the cradle of human beings, which implies that we
will not be limited on earth. Humans have broken the first boundary
between the Earth’s surface and space to the Karmen line above
100 km (McDowell 2018). However, it should not be just a few
astronauts or billionaires who can enjoy traveling space. All people
should have the opportunity to experience space travel. We wonder
whether humans can live peacefully on the earth forever. That is why
people work hard to find ways to survive in space, which is extremely
difficult for human beings. In addition, human beings go to space
because they want to experience different travel experiences in person
to have a breakthrough of their horizon, especially when they can
participate in the universe to explore the meaning of life. When most
people can go out of the earth and travel between the earth, space, the
moon, and Mars, human beings will better understand the earth and
themselves. We will not be limited to the earth’s surface to make a
breakthrough in the current knowledge and be more capable of
protecting our planet. In other words, going to space helps broaden our
horizons and ensures the sustainable development of human
civilization.
The commercialization of space technology has economic
implications and cultural development (Jones 2018). When citizens
experience space exploration, they can deepen their understanding of
the relationship between the Earth and space to enhance their shared
awareness of protecting the planet. Space travel can highlight the
significance of space economics for human development at the social
level. It helps shape space culture and strengthen the development of
science popularization and education. The government should form
policies and invest resources to support the development of
commercial aerospace enterprises. The aerospace enterprise should
invest in researching and developing low-cost, innovative, reusable
space shuttles for a price friendly to ordinary people. The capital
market can actively invest in the space market to promote the
sustainable development of space tourism.

10.2 Economic Contribution of Space Tourism


The space tourism economy includes investments in the space supply
chain and the spending on tourists’ clothing, food, lodging, and travel in
space that differ from those on Earth (Giachino et al. 2021). Tourists
can experience weightlessness, enjoy space scenes, take a spacewalk,
play in-cabin golf, and do space bungee jumping. These special leisure
activities are already in the planning of space tourism to contribute to
the space economy that breaks through the Earth’s economy. The
economic contribution of space tourism can be discussed at both the
industrial and individual levels, as detailed below.
10.2.1 Macroeconomics Contribution
The macroeconomic contribution of space tourism can be analyzed by
the expenditure method and the value-added method based on the
economic output theory, as shown in Table 10.1. The expenditure
method is the macroeconomic expenditure model. The results can be
used for international economic expenditure comparisons, which can
observe the outcomes of a country’s space tourism industry. The value-
added method is an industrial economic analysis model. The results can
distinguish the economic contribution of the domestic space tourism
industry compared with other industries. We can observe the
advantages and disadvantages of a country’s space industry. The
commercial development of space tourism is an inevitable trend of
space technology development that can promote economic growth as
well. A study pointed out that the scale of the global space economy is
estimated to reach 600 billion US dollars in 2030 (Pekkanen 2021). The
contribution of economic potential to global gross domestic product
(GDP) will cross the 1% threshold in 2040 (Weinzierl 2018).
Table 10.1 Space economics analysis methods

Measurement of economic contribution Rationale


Expenditure Measure expenditure by space tourism The expenditure method is used
method organizations, travelers, suppliers, across countries to measure the
investments, and employees expenditure of different
stakeholders. The economic
output can be compared with
other countries
Value added Measure the total salary income and corporate Compare the contribution of the
method profits in the industry chain. It includes the space tourism industry to other
value added of space tourism organizations, industries in the overall
suppliers, passenger spending, supplier economic GDP
spending, government or private investment,
and industry employee spending

The analysis context of the space industry chain is shown in


Fig. 10.2 from upstream to downstream with direct and indirect
affiliated companies. The contribution of each stakeholder to the
economy can be divided into direct effects, indirect effects, and
derivative effects as follows: (1) The direct effect is the output value
(expenditure) of the direct industry chain of space tourism; (2) The
indirect effect is the output value (expenditure) of the ground suppliers
of space industry; (3) The derivative effect is the output value
(expenditure) of ground suppliers and employee spendings of space
tourism industry chain. The outputs come from manned space
activities, including activities of acquiring space resources, energy, and
space resources. The space related cultural and service activities also
contribute economic benefits, such as space science education, space
carrying effect, and advertising effect. The summation of the above
output values is the overall economic contribution (Peng et al. 2022).

Fig. 10.2 Space tourism value chain

10.2.2 Expanding of the Space Industrial Economics


To expand the space industry’s economic scale, space tourism should
be a product that both civilians and the wealthiest have the opportunity
to consume. Although the current fare is still ultra-expensive, we should
still strive to promote space tourism as a consumer commodity that
most people can enjoy. The space industry is currently trying many
cost-cutting methods, including expanding the participants of related
industries. Innovations in space technology are crucial for reducing the
cost of space travel. NASA’s launching a rocket cost 450 million dollars,
but SpaceX has dropped to less than 60 million dollars, which is only
13% of NASA’s cost; a primary reason is reusable carriers developed by
SpaceX (Ansar and Flyvbjerg 2022). However, the ticket price for a seat
is still ultra-high at 55 million dollars. Even Virgin Galactic flies to lower
orbital heights that cost 450,000 dollars per seat, which is not
affordable for ordinary people. To expand the industrial scale, A game
based on the Game Theory could be designed to encourage the related
companies to participate in space tourism and involve the participants
of civilian tourists. The participants of booming space tourism in the
United States are only the suppliers, spaceship companies, and ultra-
rich tourists. The economic and distribution efficiency of the market
has neither been achieved. To promote the economic efficiency of the
space commodity market, in addition to reducing the cost of the space
industry, it is also essential to expand the participants in the supply
chain and consumers. A space tourism game could be designed to
expand the participation of suppliers and consumers. In addition to the
original supply and demand of spaceship companies and extremely
wealthy people, we can create games similar to sports or welfare
lotteries, which could involve more related industries and civilian
tourists.
The game can be designed as shown in Fig. 10.3, where (1,1)
represents the current market’s supply and demand sides, including the
spaceship company and the extremely wealthy people. We could apply
the option pricing model as an analogy. The strike price negotiated at
the beginning of the period and the actual strike price of the space trip
experienced minimal fluctuations during the period. This is similar to
the current market structure depicted in Fig. 10.3, where both (1,1)
oligopolistic spaceship companies and extremely wealthy tourists are
present. We could expand the market by adding the newly created
supply and demand participants, as shown in Fig. 10.3, to be the (2,0)
or (0,2), that is, the game between new suppliers and civilian travelers.
Civilian travelers want to enjoy space tourism must join the game with
new suppliers that can raise funds for enlarge the business scale.
Suppliers can be large enterprises or Macau gaming groups. The 2 in
Fig. 10.3 means the winner of the game. If the winner is a civilian,
he/she can enjoy space travel with the capital of gathering funds.
Suppose the winner is the new supplier; the betting money belongs to
the game hosting company. Macau’s gaming companies must invest a
certain percentage of their sales in public affairs. Space funds could be
an excellent target to provide society with economic feedback and help
diversify the gaming industry. This game’s thriving design and
implementation can increase civilian participants and other industrial
companies, such as the gaming industry, to join space tourism. The
game can grow the innovative business of Macau’s gaming industry.
Space tourism can also contribute to Macau’s role as a world leisure
center. The new space tourism market has added new participants: the
related companies on the supply side and the civilian winners on the
consumer side. This game allows civilians to enjoy space tourism. More
suppliers can also join the extensive space industry chain (Lv et al.
2022). The Macau gaming industry can design the game to increase
participants entering the space tourism value chain to create
economies of scale and reduce costs. Introducing space tourism and
related services into a game can help promote the development of the
space industry and expand the economic benefits. This innovative
design can achieve a new style of space tourism, which can benefit the
country and the people’s welfare.

Fig. 10.3 Space tourism game


It is worth noting that the newly added suppliers, such as the
gaming operators, are originally unrelated to the space industry. New
participants of the derivative industries and civilian passengers can be
designed to enlarge the space industry’s scale for sustainable
development (Sachs et al. 2019).

10.2.3 Microeconomic Pricing Model of Space Tourism


Microeconomic analysis of space tourism helps understand individual
behavior in the space industry. The uniqueness of space tourism can be
observed from microeconomic supply and demand (Gurtuna 2013). It
is a vast difference from surface tourism, which can be told from the
cost structure of suppliers and the demographic characteristics of
consumers. The result is the ultra-expensive equilibrium price, as
indicated in Fig. 10.4. For example, the fare of Virgin Galactic is nearly
500 times higher than that of general Atlantic routes, and the fare of
SpaceX is 100 times more expensive than that of Virgin Galactic.

Fig. 10.4 Spacetime curvature pricing model

Therefore, we propose a pricing model for space tourism that


reflects the microeconomic behaviors of suppliers and consumers: the
spacetime pricing model, which can theoretically be analyzed based on
Einstein’s general relativity theory (GRT) (Elizalde 2021). Spacetime in
GRT integrates time and space dimensions into one dimension. Space
tourism can be regarded as a futures or option commodity. For
example, in 2018, the Japanese billionaire Yusaku Maezawa booked
tickets for SpaceX’s 2023 trip to travel around the moon. It is regarded
as a futures or options commodity, and the contract can be revoked or
resold to others who meet the requirements of traveling to space. Space
travel is no longer a flat spacetime commodity on the surface (Martinez
et al. 2021). Current aviation trips are at altitudes of 6, 12, and 19 km
above the ground (Young 2017). The small curvature can be regarded
as the surface commodity of flat spacetime, which is acceptable that we
habitually ignore the slight spacetime curvature. However, space travel
flies at the Carmen line at an altitude of around 100 km above the
ground (McDowell 2018), exceeding aviation flight by four times above
the ground. SpaceX spaceship flies a height of more than 575 km above
the surface, which can be regarded as a large curvature commodity that
causes a big difference in the price of earth and space travel (as shown
in Fig. 10.4). Therefore, the booming space tourism service should be
considered as the spacetime commodity with a pricing model suitable
for developing this commodity as soon as possible. GRT can echo the
characteristics of space commodities with its pricing model using a
spacetime scale. In the long-term future, when we can travel by the unit
of light years, the pricing for spacetime travel will be very different
from today. The pricing of general commodities mainly considers the
general equilibrium of supply and demand. The pricing model assumes
the returns change over time, taking time as an independent variable.
The main reason is that commodities on the surface of the Earth only
need to consider flat spacetime, where the spacetime curvature is small
enough to be ignored. Space tourism should be a commodity that
escapes from the Earth’s surface with flat spacetime to space with large
curvature spacetime. Different spacetime curvatures should be
considered in the pricing model. The spacetime curvature of general
relativity can be used to verify why space tourism has such high prices
(see Fig. 10.4). Intuitively, this commodity needs to change its
spacetime curvature from that of Earth to the spacetime curvature in
space. Each curvature spacetime unit (as shown in Fig. 4b, c)
corresponds to the gradient change of each energy–momentum tensor.
The corresponding prices should echo the value of flying to the specific
curvature in space. The concept is the pricing in Eq. (10.1) that
echoes the spacetime matrix, and the economic equilibrium reference
system is implicit in Eq. (10.1) like in GRT. The space tourism pricing
model should adopt the spacetime scale when or in
Eq. (10.1), which differs from the economic model of traditional
commodity pricing. When or is not equal to 0 in Eq. (10.1), the
pricing models are the Earth commodities. GRT can explain why the
extremely high pricing of space tourism that reflects the spacetime
curvature characteristics.

(10.1)

A new participant in Macau could be the gaming industry. In Macau,


the licenses are tightening in the gambling industry, which needs
diversification for survival and further development (Liu et al. 2020).
Macau is positioned as the World Centre of Tourism and Leisure in
national and Greater Bay Area policies that can develop a space tourism
agent service from the gaming industry. Individual gaming enterprises
can play the supplier role of the space travel agency or the bookmaker
of the space gaming institution, using the spacetime pricing model to
earn agency profits. This is a channel to increase participation in the
space tourism industry, which can enlarge economies of scale in the
space industry to reduce space travel fares, allowing more people to
enjoy space tourism (Crouch et al. 2009). The diversified development
of Macao’s industries is the policy of Macao SAR and central
governments. In addition to the convention and exhibition industry
related to Macao’s gaming industry, the space industry could be an
alternative to diversify.

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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_11

11. Space Tourism Management and


Service Design
Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

Many Western private enterprises, Virgin Galactic, Blue Origin, and


SpaceX, have successfully delivered space tourism services (Spiller
2023). This developing industry should have the priority to (1) explore
the real demand for space tourism, (2) keep innovating space tourism
technology, (3) implement the differential strategy for space tourism
development. To address the above three major priorities, well
management and service design can provide solutions for the space
tourism value chain. This chapter applies the five forces model to
analyze the industrial environment concerning opportunity and
threats. Service design is used to analyze the strengths and weaknesses
of individual companies.

11.1 Space Tourism Industrial Analysis


The space tourism industry can be discussed with Michael Porter’s Five
Forces Model (Fig. 11.1), which can analyze the competitiveness from
the long-term profitability perspective of the space tourism industry.
This profit is attractive to invest corporate resources. Grundy (2006)
stated that the Five Forces Model provides a framework for looking at
the competitiveness of an industry by analyzing how various
stakeholders affect the industry (Andriotis 2004).

Fig. 11.1 Five forces model

11.1.1 Threat of New Entrants


A high level of barriers to entry is one of the characteristics of the space
tourism industry. The existential threat of competition from new
entrants entering the industry is greatly reduced. Companies that want
to join the industry must overcome specific complex barriers, such as
huge fixed costs and the economies of scale already formed by industry
leaders (Benjamin 2018).
Space tourism operations require vast capital, which has become
the first obstacle for new entrants to enter the industry. A large amount
of start-up capital, as well as research and development funds, are
needed to compete in the industry. Virgin Galactic is one of the well-
known companies in the space tourism industry that invests enormous
research and development expenses of over 600 million US dollars. The
planned initial 2021 commercial operations have to be delayed until
the second quarter of 2023, which has increased the cost. The cost
levels of other space tourism companies have similar conditions and
are even more expensive (Orr 2019). Financial capital is a high barrier
to entry into the space tourism industry; however, the scale of the
capital market has gradually tilted toward the industry, with more and
more large-scale investments. The heads of many space tourism
companies have invested significant amounts of personal assets into
their companies, such as SpaceX founder Elon Musk, Blue Origin
founder Jeff Bezos and the founders of Virgin Galactic, Sir Richard
Branson, who are investing substantial personal capital in the
commercial space tourism market (Orr 2019). In addition, funds from
the venture capital market have also started to get into the industry.
Economies of scale mean that a firm reduces the unit cost of a
product by expanding the number of products. Companies can use their
R&D knowledge and production experience in increasing scales to gain
a cost advantage in the market. This trend is in the manufacturing
industry moving towards vertical integration of their parts production,
which means that this industry is moving away from outsourcing
relationships. For example, SpaceX manufactures more than 70% of its
product components by itself, which can effectively control the quality
and cost of the production process. It is one of the reasons why it has
become a strong competitor in the space industry. Existing companies
use the synergies to promote their space business by generating
economies of scale to reduce production costs and increase the
threshold for new entrants (Benjamin 2018). To sum up, the high fixed
costs of space tourism and significant capital investments have formed
the entry barrier. The economies of scale brought by vertical
integration are also barriers to the space tourism industry, thus
reducing the potential competition from new entrants to avoid Red Sea
competition.

11.1.2 Bargaining Power of Suppliers


For the reusable space vehicle market, the manufacture of parts is
standardized; however, space tourism with a limited number of buyers
makes it difficult to find suppliers for small-volume specialized parts
orders. This increases the bargaining power of some niche suppliers to
respond to such demands actively. On the contrary, it is more likely that
the space industry will accelerate the vertical integration strategy.
Vertical integration measures can lower production costs, reduce the
probability of unfavorable factors in the supply chain, and effectively
ensure quality control. SpaceX is the best example of this vertical
integration strategy, which allows the company to greatly reduce the
cost of launching commercial satellites (Benjamin 2018). The vertical
integration strategy reduces the bargaining power of independent
suppliers.
Due to the high industrial entry barriers, the number of business
suppliers in the space tourism industry is very limited, which makes
these business suppliers have a high level of bargaining power.
However, as the reverse vertical integration strategy dominates the
market, competitors with upstream integration capability can balance
this bargaining power from suppliers. Therefore, the bargaining power
of industrial suppliers is high if they are independent, but if their
customers can implement forward integration in the market, such as
SpaceX, the bargaining power of suppliers will be reduced (Benjamin
2018).

11.1.3 Bargaining Power of Buyers


According to a survey on the willingness of different countries’ people
to travel in space, approximately 60% of Americans, 70% of Japanese,
and around 43% of Germans expressed strong intentions for space
tourism (Chang and Chern 2016). In another survey on the demand for
space tourism among more than 300 Chinese consumers, 65% of the
Chinese consumers expressed their willingness to participate in space
tourism, as can be seen that the public has a high willingness for space
tourism in attitude. However, only those who have strong financial
capacity can afford to take space trips (Peng et al. 2022). Even with very
few tourists who can participate space tourism, their bargaining power
with suppliers is extremely limited.
The rising reservation fares show the limited bargaining power of
buyers for space travel. As of early 2016, XCOR’s space travel tickets
have rosen from $100,000 to $150,000 each. The company’s “Founders
Astronaut Program” qualification has been successfully sold out despite
rising reservation prices. Virgin Galactic also raised the price of
$200,000 per ticket in 2005 to $250,000 in 2016. The price is
increasing to $450,000 in 2021, but there are still increasing buyers to
reserve space travel (Benjamin 2018). Even the commercial operations
continue to be delayed. The bookings are still popular. Given the above
facts, coupled with the extremely low elasticity of demand at the
current stage, buyers have very limited bargaining power over space
travel supplier companies.

11.1.4 Threat of Substitute


The main alternative to suborbital space tourism is the high-altitude
helium balloon flight. Strictly speaking, high-altitude balloon voyages
do not involve space, but they can take tourists to the edge of space,
which is high enough for them to see most of the space scene. This
experience allows participants to observe the Earth from the edge of
space, providing an alternative demand for space travel (Cohen and
Spector 2019), such as WorldView’s service. Most space enthusiasts
still intend to enter space by taking a spaceship to experience
weightlessness and real space experience. In terms of the
weightlessness experience, the business provided by Zero-G’s space
service is a modified Boeing aircraft for a parabolic motion to
experience weightlessness. Still, the zero-gravity experience and other
space experiences, such as space landscape and speed, still need to
implement natural space tourism (Benjamin 2018). Therefore,
alternatives cannot meet the needs of the space tourism market and are
not a significant threat.

11.1.5 Industry Rivalry


Commercial space tourism can be traced back to the end of 1999 when
Russia’s Gagarin Cosmonaut Training Base began implementing space
tourism operations. The project has brought considerable profits to the
Russian Federal Space Agency, which made other countries start to join
the competition. NASA developed the “Soyuz” spacecraft and
successfully entered space, at the same time accelerating the pace of
research and development of commercial manned spacecraft like the
“Dragon” and “Starliner” spacecraft. Virgin Galactic, Blue Origin, and
SpaceX are also joining the competition. Among them, Space X has
announced its space tourism plan for manned flights around the moon.
In 2023, it will carry Japanese businessman Maezawa Yusaku with
other seven tourists to take the moon trip (Friel 2020). It can be seen
that the degree of customization of various space tourism products in
the market is relatively high, and the competition in the industry is
becoming increasingly fierce (Friel 2020).

11.2 Space Tourism Service Design


Space tourism was successfully launched in 2021 in the cases of Virgin
Galactic, Blue Origins, and SpaceX. China is one of the countries that
have the capability to take people into space (Miraux et al. 2022).
However, China has only a commercial branch company of the Chinese
Academy of Sciences, CAS Space, which plans to launch space tourism
in 2025. The risk is still high, and it is still a challenge to run space
tourism by a private company in China from an engineering
perspective. Space tourism must ensure very high reliability and safety.
SpaceX is currently able to launch once a week; each launch is fully
loaded, and the success rate is also perfect. The private space tourism
operations will come true, but it should be different from the scientific
exploration of the national tasks with well-trained astronauts to fly into
space. The civilian space travel should be focused on low-Earth orbit
tourism for economic purposes. Then, the state’s team can put more
efforts into deep space projects (Miraux et al. 2022). The private space
market should be developed and require the national resources to
transfer space technology from military purposes to economic
development. Western companies have successfully completed several
space tours. China has only the national team, China Long March Rocket
Company and CAS Space, plan to implement the civilian space tourism
plan around 2024–2025 and plan to realize a single space trip with 10–
20 people before 2035. The realization of China’s space tourism could
happen in a few years. It can follow the path of Western space
companies to run space tourism to let Chinese people can also share it.
Facing the development trend of space tourism in the future, the
service design and corresponding technology of space tourism should
also be prepared in advance.
China’s space technology is in a leading position worldwide. The
Shenzhou and Long March rockets have been continuously launched to
accomplish various missions of state tasks (Qisong 2021). However, the
development of privatization is still on the road. The vertical
integration of the space industry’s commercial development is
significant. The service design of space tourism from the demand side
is a pull strategy to guide the direction of the supply-side technology.
Chinese companies should also adopt SpaceX’s vertical integration
strategy. The vertical integration strategy for the value chain can help
gain competitive advantages for commercialization that can attract
space tourists worldwide. It can also continuously link related
industries and service projects to join the supply side. Space
Adventures and Axiom Space played the role of a space travel agency,
introducing global space travelers to take a Russian spaceship or
SpaceX spacecraft to the International Space Station to experience
space (Cater 2010). In the future, space travelers will also be able to
take a Chinese spacecraft to see the panoramic view of the Earth from
the Chinese Space Station. Chinese space tourism should provide one-
stop services in the industrial chain from the perspective of service
design, emphasize the needs of the demand side and the quality on the
supply side, and connect the advantages of vertical strategic alliances
from the upstream end to the consumer end. In that case, it can create a
differentiated advantage in space tourism. The development of the
space tourism industry will contribute to economic growth and
increase employment opportunities in the space labor market. For
example, SpaceX has created nearly 10,000 jobs in the United States
(Seedhouse 2015), and the space industry chain has absorbed many
start-ups in the space value chain. We can expect that service design for
the space industry will create innumerable job opportunities.

11.3 Service Design and Quality Engineering


The innovation and creativity of service design are crucial factors.
Service design has a wide range of applications to satisfy customers,
usually involving infrastructure construction and organization
restructuring. The primary task is to strengthen the relationship
between service providers and customers to interact with each other
for value co-creation (Goldstein et al. 2002). The service design of space
tourism is a radical innovation. There are huge differences and
thresholds in the service attributes of space tourism, compared to
ground tourism, such as physical strength and mental health, as well as
price thresholds. Space tourism can adopt a pull strategy based on
customers’ needs to tune space-manned technology that responds to
humanity. Service design is illustrated in Fig. 11.2.

Fig. 11.2 The process of service design

11.3.1 Exploring Service Needs and Opportunities


To explore the service needs and opportunities of space tourism, it is
necessary to analyze the target market so as to develop the potential
customers to explore and prioritize customers’ needs. Exploring service
needs and opportunities can be carried out in three approaches: user
profile, role-playing, and needs prioritization (Hjalmarsson et al. 2015).
(1) User profiles

User profiles can be applied to classify the portraits of different


target customer groups for space tourism (Danov 2020). We need to list
target market segmentation factors, such as primary demographic (age,
gender, spending power, etc.), career attributes (service-related
preference, professional relevance, etc.), and service requirement
preferences (launch location, expected frequency, etc.). Prioritizing the
market segmentation factors obtained from the analysis results can
help market segmentation. The factors must be able to distinguish
between core users and non-core users. Core users should be the
customers whose characteristics have the highest interest in space
tourism in all aspects. In other words, they are more likely to take space
trips with strong consumption willingness and heightened interest in
space tourism. Non-core users are the opposite; their consumption
willingness for space tourism may be sporadic, such as customers who
are lucky to win the lottery in events. Market segmentation can be
conducted through the levels of classification factors, the prioritization
of factors, and the different customer groups of space tourism, as
shown in Fig. 11.3.

Fig. 11.3 User profile process

(2) Role Playing

The user profile method can obtain space tourism consumer groups
with their characteristics. Each group will be investigated to categorize
consumer needs for offering services. The affinity diagram, also known
as the KJ diagram, can be used to collect consumers’ needs, which will
be combined with similar needs of the same kind and summarized into
a tree diagram in different groups. The KJ diagram distinguishes and
combines different types of needs for analyzing the needs of the target
market (Lin et al. 2019; Peng and Lin 2016).
(3) Needs prioritization

We can prioritize the above-mentioned in-depth needs of the target


markets to understand the service requirements and unmet needs of
different customer groups in space tourism services. Using the KANO
model (Oduntan 2019), as indicated in Fig. 11.4, helps judge the
priority and importance of the deep-insight needs of space tourism.
The model defines levels of customer needs, sorted by importance.
Then, we can analyze the needs in the four-quadrant framework.
According to the priority analysis results, five types of needs are listed
as follows (Sauerwein et al. 1996):

Fig. 11.4 KANO needs model

(a) Must be needs: Tourists take time for granted are basic needs,
such as safety needs, which are the most fundamental
requirements for space travel (Wild et al. 2015). Tourists will be
very dissatisfied if such needs are not met. However, tourists may
not show additional satisfaction even if such needs are met.

(b) One-dimensional needs: It refers to the type of demand in which


customer satisfaction is proportional to the degree of satisfying
demand. When such demand meets expectations, customer
satisfaction will be significantly improved. The higher the service
quality provided by the space tourism supplier, the higher
customer satisfaction by space tourists (Matzler and Hinterhuber
1998). The supplier should provide commercial products and
services corresponding to such expected demands to get more
competitiveness in the space industry. For example, the super-
large viewing dome window provided by SpaceX is designed for
unprecedented space views for space tourists that belong to the
expected demand.
(c) Attractive needs: Also known as exciting needs, customers do
not expect such services. However, customer satisfaction will be
greatly improved when the attractive needs are met. Even if such
needs are not well met, customers will not show dissatisfaction.
This kind of needs are manifested in customers’ potential demand
for space commercial services, which requires the company to
investigate and dig out to be ahead of competitors. For example, in
the suborbital space tourism project provided by the European
Aerospace Defense and Space Corporation (EADS), the service of
free floating outside the cabin is also taken into consideration.
Such services can exceed customers’ expectations and bring them
pleasant surprises (Chavagnac and Laporte-Weywada 2009).
(d) Indifferent needs: There is no impact on customer satisfaction
whether the indifferent needs are met or not. It is not necessary to
invest resources in such needs (Mkpojiogu and Hashim 2016).
Resources should be invested in more valued space products. For
example, it is indifferent needs whether space vehicles are avant-
garde, which may not have impact on customer satisfaction.

(e) Reverse needs: The type of reverse needs will cause


dissatisfaction with services that most customers do not require.
The company’s offers of related services will lead to a decline in
customer satisfaction (Mkpojiogu and Hashim 2016). The more
the services, the more customer dissatisfaction. Companies should
avoid this type of space service that will cause negative effects. For
example, suppose the spacecraft cabin is designed to have more
windows for passengers to enjoy a better view in the space
navigation. In that case, most passengers will worry about safety
in the cabin. Tourists might think that the solid and limited
window design can bring more benefits to the cabin. The more
windows in the space cabin, the more worry and dissatisfaction
from customers.
Space tourism companies need to clarify the above needs categories
based on the KANO Needs Model (Cai et al. 2023) with related services
and corresponding technology, such as (a) launch safety technology, (b)
protective heat shield and window design, (c) free-floating cabin space
and safety facilities, etc., for needs that customers want.

11.3.2 Service Product Design


Service product design can be conducted through a model called
Quality Function Deployment (QFD), as shown in Fig. 11.5. The main
task is to summarize and layout to select appropriate service functions
that can meet customers’ needs. The deployment of service functions
can help in service analysis to provide required service products. QFD
presents consumer needs, service functions that suppliers can provide,
service function thresholds, and competition analysis in the QFD, which
can help in choosing the appropriate service function (Lin et al. 2019;
Peng and Lin 2016).
Fig. 11.5 QFD
The QFD analysis steps are as follows: (1) Summarize the potential
customer needs collected in surveys and list service requirements on
the left side of the QFD; (2) expand the existing and alternative
requirements by using the brainstorming method; (3) display all the
candidate service functions, compare them pair by pair and analyze
whether there are any interactions between pair functions; (4) analyze
the relationship between all service requirements and functions; (5)
analyze the service thresholds and completion goal of each service
function; (6) analyze the existing market competition analyze, draw the
conclusion of the market competition situation and write it into the
expansion diagram; The left side of Fig. 11.5 is the expected service
requirements, the upper part is the corresponding supply functions,
and the other parts are corresponding analysis tools and reference
criteria for supply and demand. QFD can complete the technical supply
analysis for space tourism by using a pull strategy (Peng and Lin 2016).

11.3.3 Service Process Design


The service process design should engage service providers and
customers working together to ensure the service process is smooth
and effective, which directly affects customer satisfaction. In the
previous stage of service product design, the supplier has decided to
provide what kinds of service functions fulfill customers’ needs. Then,
the corresponding service process should be followed (Lin et al. 2019;
Peng and Lin 2016). Service process analysis aims to ensure that
technology always echoes humanity in service delivery to raise
customer satisfaction. The following are two approaches to conducting
the service process design.
(1) Service process design

At the beginning of the service process design, it is necessary to


determine which service processes should be established based on the
service functions that need to be provided in QFD. The service process
design is a continuation of QFD in the previous stage of service product
design. Designing a well-fitted service process to carry out the
implementation of service functions that meet customers’
requirements (Song 2020), as shown in Fig. 11.6.
Fig. 11.6 Service process of space weightiness experience

(2) Service blueprint

The service blueprint includes four main behaviors: customer


behavior, front-end employee behavior, back-office employee behavior,
and technical support process. Service blueprints can be divided into
four areas by three boundaries: interaction boundary, visual boundary,
and internal boundary (Chen et al. 2020). The four behaviors are
classified into regions to confront the specific service process and
related technologies. Service blueprints can also identify the potential
space tourism service failure points to prepare service remedies when
real service failures happen, as shown in Fig. 11.7.
Fig. 11.7 Space tourism blueprint

11.3.4 Service Resouce Design


Service resource design is the last stage to support service product
design and service process design. Service resources come in many
forms, such as human resources, materials, raw materials, cabin
facilities, etc. (Javaid et al. 2022). After completing the above-
mentioned service product design and service process design, the
corresponding service resources must be settled accordingly, as shown
in Fig. 11.8. Logistic support of the supplement-intensive resources is
indispensable, including (1) technical resources should be provided
according to the service functions in QFD; (2) human resource support
refers to the job classification and description of the tasks assigned to
the roles involved in the service process design. Experience and ability
are required for each support role, as they may serve multiple
positions. Additionally, different roles can also contribute to the same
function. After determining the job descriptions and responsibilities,
the space tourism service personnel can be selected according to the
qualification requirements to play the specific role. Service resource
design is an integral logistical support for implementing service design.
Fig. 11.8 Service resource design

11.4 Feasibility Analysis


The commercialization of the space industry is an innovative process
that spans from the upstream to the downstream of the industrial value
chain. The feasibility analysis includes policy, technical, economic, and
social benefit analyses (Elkadeem et al. 2019), as shown in Fig. 11.9.
Fig. 11.9 Feasibility analysis

(1) Policy analysis

Policy analysis is the process of identifying potential policy options


that could address the industry problem and then comparing those
options to choose the most effective, efficient, and feasible one. The
policy resources are essential to support the survival of the space
industry with system integration of the space tourism value chain (Lee
2003).
(2) Technology analysis

Space tourism should innovate its short, medium, and long-term


technologies for industry development. In addition to the current space
technology, research and development of new space science and
technology is also important to make continuous improvements to
increase the feasibility of the space tourism industry (Reddy et al.
2012).
(3) Economic analysis

Economic analysis estimates the commercial benefits based on the


gain or loss principle, deducts the direct costs and indirect costs, and
adds the related industry income and expenditure derived from space
tourism, such as the space tourism infrastructures on the ground.
Optimal productivity is when the marginal cost is less than the
marginal sales, which can earn profits (Kumar 2020; Thoppil and Zein
2021).
(4) Social benefit analysis

In addition to the economic benefits, there are many social spillover


costs and benefits such as (a) Transfer payments: It is the social
benefits of the core and peripheral industries related to space tourism,
such as government taxation, subsidies, bank interest income, and loan
repayment. (b) Employment benefits: the opportunity cost and net
income of labors. Methods include the hedonic price method: the
number and value of various features it contains in the space tourism
industry. If the number and value of features that can meet social needs,
the social benefits will be higher (Ebejer 2021).
In summary, the feasibility analysis can help the space tourism
industry build up a survival niche and unique competitive advantages
for long-term development (Cagiga Vila 2021).

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K.-L. Peng et al., Space Tourism Value Chain, Contributions to Management Science
https://doi.org/10.1007/978-981-97-1606-7_12

12. Sustainable Space Tourism


Kang-Lin Peng1 , IokTeng Esther Kou2 and Hong Chen3
(1) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(2) Faculty of International Tourism and Management, City University
of Macau, Macau, China
(3) Institute for Research on Portuguese-speaking Countries (IROPC),
City University of Macau, Macau, China

Kang-Lin Peng (Corresponding author)


Email: klpeng@cityu.edu.mo

IokTeng Esther Kou


Email: estherkou@cityu.edu.mo

Hong Chen
Email: hongchen@cityu.edu.mo

The theory of sustainable development emphasizes the balance


between economic growth and environmental conservation (Ruggerio
2021). Sustainable space tourism confronts the same economic and
environmental issues. In the first year of space tourism in 2021, Virgin
Galactic, Blue Origin, and SpaceX completed five space travels for 21
people that gained much economic and brand value. Taking SpaceX as
an example, the gross profit rate is 266% for 55 million US dollars per
ticket and four passengers per flight. The net profit is still considerable,
even after deducting fixed costs and other related expenses. There is no
doubt that the space tourism industry can contribute to economic
development. However, space tourism will cause a large carbon
footprint, a side effect of economic growth like other industries. This
emerging industry leaves a big argument about its negative
environmental impact. For example, Virgin Galactic took tourists to
experience just a few minutes of zero-gravity in 90-min flight. The
carbon emissions are equivalent to a flight from London to New York. A
rocket carrying four passengers can produce up to 300 tons of carbon
dioxide emissions from departure to landing. Space tourism has
encountered the challenge of carbon neutrality, which has become a
complex issue for sustainable tourism (Peeters 2018).

12.1 Economic Development and


Environmental Conservation
China’s fifth aerospace white paper, “2021 China’s Aerospace,” pointed
out that aerospace technology is an important manifestation of the
comprehensive development of a country’s science and technology.
Space tourism has become one of the critical projects to transform
state’s space technology for economic and social development
(Toivonen 2022). On November 1, 2021, the China Manned Spaceflight
Engineering Office issued the “Manned Spaceflight Engineering Quality
Management Measures” to declare that China’s space tourism is ready
to go. China made a commitment to carbon neutrality in 2060 in the
75th United Nations General Assembly. The actions include ensuring
industrial and economic development within the framework of the
Paris Agreement on climate change because of carbon emissions. The
achievements of China’s space science and technology have attracted
worldwide attention (Spagnulo 2021). The private sector of space
tourism is also developing in the commercial of aerospace. With the
competition of the western space industry and the goal of worldwide
carbon neutrality, the development of the space economy and the goal
of environmental carbon neutrality should be emphasized so that it can
assure sustainability. China’s Long March Rocket Company and China
Aerospace Science and Technology Corporation are expected to carry
space passengers to experience space tourism in 2024. Compared with
the development of space tourism abroad, China should have a vision of
sustainable development in the space industry; it should include the
goal of carbon neutrality. Economic development and environmental
protection are equally important. Not only can this industry develop
into a technological and economic power, but it can also fulfill the
responsibility of a world citizen. Exploring the universe, developing the
aerospace industry, and building a powerful aerospace country need to
consider environmental conservation, which can be implemented with
the goal of peaking carbon dioxide around 2030 and achieving carbon
neutrality by 2060. Actions include various emission reductions, zero
emissions, and carbon sequestration that the carbon neutral technology
can offset carbon emissions so as to achieve the “net zero emission” of
carbon dioxide in 2060.
In the space tourism year of 2021 (Yazici and Tİwarİ 2021), some
Western countries have successfully completed four space trips for 18
people in one year. Compared to the start of space tourism with Dennis
Tito in 2001, who embarked on a sightseeing trip by boarding a Russian
spacecraft, only seven space tourists successfully completed their
journeys between 2001 and 2021, spanning a period of 20 years. In
2021, space tourism experienced a major boom. For China, the current
plan is to launch space tourism via the Chinese Long March rocket or
the commercial branch of the Chinese Academy of Sciences (CAS), CAS
Space, in 2024 or later in 2025. However, the carbon footprint of space
tourism is huge; the environmental impacts should also be considered
for sustainable space tourism.

12.1.1 Carbon Neutrality Technology


China made a commitment to achieve carbon neutrality by 2060 during
the 75th session of the United Nations General Assembly. Carbon
neutrality technologies must be developed and comprehensively
carried out to reach the goal. The states and enterprises have to invest
resources to reduce the carbon emissions of the space industry because
of the vast carbon footprint it causes. As an example, the rocket launch
site on the ground can develop the ecological carbon sink, carbon
utilization, carbon storage technology, and other related carbon
reduction technologies around the launch site. It is necessary to
evaluate the potential and risk of the carbon sink of the ground
ecosystem during the rocket launch. Echoing the goal of carbon
neutrality in 2060, forests are one of the approaches that can help
develop carbon sinks. These carbon sinks can act as reservoirs to
reduce carbon emissions during rocket launches from the ground
(Durrieu and Nelson 2013). In addition to existing carbon neutrality
technologies, ecological carbon sequestration and carbon-negative
technology are also developed. The critical technologies for carbon
negative include carbon capture, utilization, and storage (CCUS)
technology. CO2 resource utilization technologies have also been
growing, such as direct carbon capture (DAC) in the air and carbon
recycling etc. (Sheehan 2021)。
Carbon neutrality technologies are fruitful (F. Wang et al. 2021) and
are mainly based on the system concept of “reducing carbon,
environmental preservation, increasing carbon sink, and sealing
carbon” (Kang et al. 2021). However, the carbon-neutrality technologies
applied to space tourism are quite limited. Except for the technical
literature on rocket hydrogen and oxygen fuel, other aspects, such as
launch site environmental technology, are still lacking. Therefore, the
process of carbon-neutrality research should be carried out in stages.
The first stage explores how to apply carbon neutrality technologies
widely developed on the ground to space tourism after the screening.
The second stage is to choose carbon-neutrality technologies that fit
the characteristics of the space industry to reduce carbon emissions.
For example, increasing the surrounding wetlands of launch sites and
the carbon sequestration capacity of forest planting. Carbon sealing is
to sequestrate carbon on the ground of the space launch site. These
methods can work together to achieve the dual goal of the space
tourism economy development and environmental conservation.

12.1.2 Sustainable Development Policy and Rules


China has launched the national carbon emissions trading market and
has begun transactions, according to the “Measures for the
Administration of National Carbon Emission Trading” issued by the
Ministry of Ecology and Environment. The measures define the carbon
emissions market structure through market mechanisms to control and
reduce greenhouse gas emissions, which promote major institutional
innovations in green and low-carbon development. This is an important
policy to achieve carbon peaking and even carbon neutrality. The
measures have been officially implemented for 2,225 power companies.
The carbon emissions of the space industry are comparable to those of
the power industry (He and Che 2023). As China's space tourism is in
the developing stage, the carbon emission, carbon neutrality, and
carbon trading of the space industry should be planned as early as
possible. It is an essential milestone in promoting sustainable space
tourism.
The commercial development of space tourism is an inevitable
trend of space technology development that can help economic growth.
Studies have pointed out that the scale of the global space economy is
estimated to reach US $ 600 billion in 2030 (Strube et al. 2017). The
space economic contribution of gross domestic production (GDP) will
be above 1% in 2040 (Reding and Eaton 2020). However, the price of
each space launch is millions of tons of carbon emissions. The balance
of economic development and environmental conservation is essential
for sustainable space tourism, which echoes the third section of The
14th Five-Year Plan (2021–2025) for the national economic and social
development of the People’s Republic of China (PRC). It is necessary to
accelerate the growth of the modern industrial system to consolidate
and expand the space economy. Regarding carbon neutrality before
2060, carbon emissions need to be reduced within a certain period
through practical measures. For example, zero emissions of clean
energy fuel, liquid oxygen, and liquid hydrogen of liquid-propellant
rocket engines could be a great help for the goal of carbon neutrality.

12.1.3 Sustainable Space Tourism


American private companies implemented several successful space
tourism projects in 2021. Blue Origin has even launched a space hotel
project (Yazici and Tİwarİ 2021). The issue is how to raise awareness of
environmental conservation instead of solely focusing on economic
development for the space industry. Space tourism will cause a heavy
negative impact on the environment because of its heavy carbon
dioxide emissions. The development of manned space technology
should also commit to carbon neutrality goals. The carbon neutrality
economic model for sustainable space tourism is depicted in Fig. 12.1.
Fig. 12.1 Sustainable space tourism
China’s aerospace white paper “2021 China’s Aerospace” indicated
that a new generation of non-toxic and non-polluting launch vehicles
will be used on the Long March 5 spaceship (He and Che 2023). It
represents that China’s space tourism industry will be responsible for
environmental conservation as one of the world’s citizens promised
carbon neutrality in 2060. The sustainable space tourism model can be
presented as Eq. 12.1. The context is to (1) investigate the direct and
indirect enterprises of the space tourism supply chain and evaluate
their outputs and economic contribution factors, calculate
environmental carbon emission factors of operating space tourism
activities, (2) reconcile the carbon neutrality factors. The carbon
neutrality sustainable model can not only keep pace with the
technological development of space tourism but also promote the goal
of carbon neutrality to become the world benchmark.

(12.1)
Formula (12.1) shows that the economic factor should be greater
than one as long as it is a profitable enterprise; the environmental
factor can be positive or negative depending on its impact on the
environment. The sustainable factor is between 0 and 1. The literature
research shows that the economic multiplier of the space industry is
about 7 ~ 12 (George 2019). We can understand the sustainable space
tourism model from the formula (12.1), which is the integration model
concerned with economy, environment, and technology together. The
model is the practice of sustainable space tourism.

12.2 Space Tourism Carbon Neutrality


Technology
To achieve a carbon neutrality goal, we analyze the carbon footprints of
the space industry and develop technologies and systems to mitigate
the environmental costs of space tourism. Only three countries in the
world, namely Russia, the United States, and China, have the technical
ability to complete human-crewed spaceflight independently (Moltz
2019). Although India claimed to become the fourth country with
human-crewed spaceflight technology in 2022, it has not yet achieved
it. It is because of the complexity of human-crewed spaceflight
technology, which integrates many modern cutting-edge technologies.
The infrastructure of the launch site, launch vehicle, and human-crewed
spacecraft includes thousands of parts. It is foreseeable that the space
tourism industry will have a vast supply chain both on the ground and
in space, as shown in Fig. 12.2. It is necessary to establish carbon
neutrality mechanisms within the space tourism industry chain to
ensure sustainability. Clarifying the carbon footprint in the space
tourism industry chain is crucial to reaching carbon neutrality.
Fig. 12.2 Space tourism carbon neutrality supply chain
The negative impact of space tourism has led to a large increase in
carbon footprint. The more space travel, the more serious the pollution.
Taking Virgin Galactic as a case, the carbon footprint of taking its space
shuttle into space once is almost 100 times that of a long-distance
flight. According to analysis, Virgin Atlantic's flight has only six
passengers, which is comparable to the transatlantic flight carrying
hundreds of people. Carbon emissions are about 4.5 tons per passenger,
which is equivalent to driving a car around the earth and twice the
personal annual carbon allowance proposed in the Paris Climate
Agreement (Walton and Goehlich 2022). Nevertheless, the ultimate goal
is to launch 400 suborbital flights per year. The company claims that it
has taken measures to compensate for the carbon emissions and plans
to pay for the carbon emissions of future flights to reduce the carbon
footprint of its space tourism business. However, spacecraft companies
are mainly profit-oriented. It isn’t easy to responsibly consider the
equal cost of carbon emissions in economic interests. Blue Origin,
SpaceX, Long March Rocket, and the CAS Space of the Chinese Academy
of Sciences all have the issue of carbon emissions. The carbon footprint
has to be considered in the space tourism industry in order not to cause
a serious lag and difficulty in China's and even the world's carbon
neutrality goals.
Carbon neutrality technologies have different approaches
depending on the impacts on the environment. The fuel used by the
spaceship and the energy required to manufacture the fuel makes space
travel harm the environment because of the carbon emissions issue. Jeff
Bezos, the founder of Blue Origin, pointed out that the liquid hydrogen
and oxygen fuels used by Blue Origin have less environmental damage
with specific impulse 25% higher than liquid oxygen methane and 30%
higher than liquid oxygen kerosene (MARSHALL 2022). Technically
speaking, Blue Origin’s space travel will not release carbon dioxide on
the fuel. However, the frequent launches of rockets and the emission of
combustion byproducts accumulating in the stratosphere, causing
ozone depletion, still have a significant impact on the environment. One
thousand launches of soot could warm Antarctica by one degree Celsius
(Comins and Comins 2017). Therefore, the new generation of manned
rockets of the China Long March 5 rocket adopts parallel bundling
technology: two 5-m-diameter boosters are bundled on both sides of
the Long March 5 core stage, and the fuel is non-toxic and non-
polluting. Liquid oxygen plus liquid hydrogen and liquid oxygen plus
kerosene are new single-element, non-toxic propulsion systems with
the most enormous thrust in the world. In the future, the Long March
series rockets will also develop repeatable rockets, and the direction of
research and development includes carbon emission reduction (Lei et
al. 2023). The carbon dioxide fuel claimed by SpaceX is also an
exclusive carbon neutrality technology to be developed by the space
industry in the future (Scott 2020).

12.2.1 Carbon Neutrality Approaches


Regarding the development of carbon–neutral technology for space
tourism, it can be progressed in three stages. First, Calculating the
carbon emissions of the space tourism industry; second, screening the
ground carbon emission technology applied in the space industry; and
third: innovating specific carbon neutrality technology of the space
industry (Toivonen 2022).
1. The carbon emission calculation method for the space industry
chain based on the concept of circular economy

Calculating the carbon emissions of the space economy industry


chain helps to understand the environmental impacts of the industry’s
development. Measurement tools include the direct and indirect carbon
dioxide emissions generated throughout the life cycle of products and
services in the space tourism industry chain. The methods include
Index Decomposition Analysis (IDA) and Structural Decomposition
Analysis (SDA). IDA includes the logarithmic mean Divisia index (LMDI)
decomposition (Ang 2005), which can achieve full decomposition
without any residuals. The logarithmic average weight analyzes the
internal causes and effects of the strength of carbon emissions in the
space industry chain that has been widely used in green energy and
low-carbon fields (Tian et al. 2023).
2. Curren Carbon Emission Technology Applied in Space Tourism

Based on circular economy theory, carbon neutrality can be attained


through carbon reduction, reuse, and resource recycling in the process
of production and consumption (N. Wang et al. 2019). Three core
elements of circular economy are economy, circulation, and natural
resources. In the production and consumption cycle of the space
industry chain, the best application and most influential of carbon
neutrality technology is using natural resources. Natural carbon sinks
such as soil, ocean, and vegetation can be used around the rocket
launch site, which is much better than artificial carbon sinks that only
store 0.003% of annual carbon emissions annually. For example,
China's Wenchang Spacecraft Launch Site is located by the sea. It can be
constructed with coastal vegetation ecosystems at the junction of the
land and the ocean, such as mangroves, salt marshes, and seagrass
beds. The ecosystem can be a vast carbon sink to reduce carbon
dioxide; more than 50% of the total carbon can be stored in the oceans.
The carbon sink design around launch sites can also include trees and
plants. Not only the upstream suppliers but also the other participants
of the space tourism industry can apply current carbon emissions
technology to contribute to sustainability.
3. Carbon neutrality technology specific for space tourism

The space industry has its unique industrial characteristics.


Researching and developing carbon neutrality technologies for the
industry, such as carbon reduction or carbon-free energy, is necessary.
SpaceX founder Elon Musk announced that the carbon dioxide rocket
fuel researched could recycle carbon dioxide. Blue Origins used liquid
oxygen/liquid hydrogen fuel that does not emit carbon dioxide
(Tomlinson 2023). China launched the Taiyuan environmental
monitoring satellite into orbit in 2022 for atmospheric environment
monitoring. The Eighth Research Institute of China Aerospace Science
and Technology Corporation leads users, satellites, and launch vehicle
institutions to build a green space supply chain. Atmospheric detection
lidar adopts dual-system laser technology to detect aerosols and CO2
for the first time in the world, which will further enhance the remote
sensing monitoring capabilities for CO2 and atmospheric pollutants.
The detection accuracy has reached the top international level. The
system can provide accurate remote sensing data of CO2 distribution
and response to climate change for the carbon neutrality goal. Other
research and development projects, such as the power system of space
equipment, artificial satellites, space stations, and aerospace orbital
equipment, can use solar cells to charge in space to achieve stable
operations that do not generate carbon emissions. These technologies
can contribute to the carbon neutrality of the space industry.

12.2.2 The Carbon Neutrality Goal in 2060


There are six carbon neutralization approaches to attain the carbon
neutrality goal in 2060. The approaches are clean energy substitution,
carbon source reduction, carbon recycling, energy saving, efficiency
improvement, manufacturing process transformation, and carbon sink
capability. Technology applications can cover six major industries:
manufacturing, transportation, energy and electricity, agriculture,
construction, and consumption. The above application fields have not
considered the space industry, which will result in a significant carbon
footprint. The scale of the global space economy is estimated to reach
600 billion US dollars in 2030 (Strube et al. 2017). Such a large
economic scale will cause environmental carbon emissions issues that
cannot be ignored. Of course, this is not an excuse to stop the
development of the space economy. Instead, we should actively
research and develop corresponding carbon neutrality technologies.
When the space and complementary industries can achieve economies
of scale, carbon–neutral technologies can reduce the cost to be applied
in the space industry. These approaches can improve environmental
conservation and foster economic efficiency towards a carbon–neutral
economy.
The space tourism industry chain, as indicated in Fig. 12.2, can
perform disruptive innovations from upstream to downstream, from
the ground to space. Many countries have established aerospace
industrial parks to develop the aerospace industry for space
commercialization. On the economic side, the overall economic
benefits, industrial economic benefits, and individual economic
behaviors of the industry should be clarified to carry out each level's
economic contributions. On the environmental side, the problem of
carbon emissions from space tourism should be resolved to achieve
carbon neutrality. R&D support of the neutrality technologies should be
integrated into the economic side to fulfill the goal of 2060 carbon
neutrality (Zahoor et al. 2023).

12.2.3 The Future of Space Tourism


The further development of aerospace technology has made space
tourism no longer limited to short-term weightlessness experience and
landscape appreciation (H. He 2023). Instead, it will provide space
travelers with a well-equipped flight experience, accommodation area,
comfortable living environment, and entertainment. The ever-
increasing demand for space tourism will be a new challenge for
spacecraft design and technology development for commercial space
travel. Space tourism is essential to large-scale space settlements,
facilitating human expansion into space(Martin & Freeland 2022). In
the next few decades, space tourism will no longer be once or twice a
year. Instead, it will promote technology to the public and become more
popular. The industry's interests may reach tens of billions of dollars in
air ticket sales with additional space services, such as providing space
food, entertainment, and space sports for space tourists. More business
opportunities will be created. (Black et al. 2022). Space tourism will
even have a more significant contribution, which is the practice of
building future commercial and residential space stations in orbit and
even space hotels (Martinez et al. 2021). These prospects will continue
to stimulate breakthroughs in space technology and economic
development.
Safety is the top priority of space tourism, which is a very risky
activity with many unexpected accidents before and during the space
flight. From a long-term development perspective, space tourism needs
to provide a risk-free environment controlled by safety systems to
achieve ultimate success (Reddy et al. 2012). Suborbital flight for a
short time is one of the travel methods that can reduce safety risks
quickly. At the same time, the personal training of tourists also needs to
be strengthened in physical and psychological dimensions. Strict
physical examination and medical testing are required for tourists
before boarding the cabinet to reduce the risk of discomfort after take-
off (Chang 2020). Space tourism is a great challenge regarding
insurance, but safety will also increase with the advancement of science
and technology, which can give insurance companies flexibility through
cooperation with aerospace companies to seize the commercial
opportunity. Regarding space law, there are many legislative essentials
to be defined in space tourism. Issues such as the definition of aircraft,
the rules that travelers need to abide by in space, and the
environmental pollution caused by space travel all need to be regulated
by new laws. Therefore, relevant rules should also be established
following the development of space tourism so that the
commercialization of space technology can be fully applied with the
support of various parties.
Space tourism has attracted a lot of attention with increasing capital
investment as a new tourism development trend. Many aerospace
companies like Virgin Galactic, Blue Origin, and SpaceX have already
started the space tourism business. To keep up with the trend, China
has released the “2017–2045 Space Transportation System
Development Roadmap” plan and the white book “2021 China’s
Aerospace”, which will begin space tourism through the Chinese
Academy of Sciences (CAS) branch, CAS Space company. The
commercialization of space tourism still has the challenges of cost,
technology, safety, insurance, and legal issues to be resolved (Mehran et
al. 2023).
Human exploration will not stop at space tourism. SpaceX has
initiated the exploration Mars. Space X plans to build a Mars colony in
the future. The goal is to establish long-term settlements of up to
80,000 people, achieved by reusable rockets built by Space X (Genta
2014), which needs to break through long-term manned technology,
reusable rockets, and sustainable self-sustaining living systems etc., as
indicated in Fig. 12.3. The commercialization of space tourism is the
first step to realizing these dreams. The ontology of human existence in
the universe will be explored through space tourism and its further
development.

Fig. 12.3 The future development of space tourism technology

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