[Global Issue+] Why Are Wealthy People Worldwide All Investing in 'Space Travel'?

3 Billion Won for 5-Minute Space Experience... Hundreds Waiting in Reservation Queue
Many Obstacles to Overcome Including Aviation Law and Insurance Issues

[Asia Economy Reporter Hyunwoo Lee] Blue Origin, a space exploration company founded by Amazon CEO Jeff Bezos, is expected to enter the space tourism business as early as April, raising expectations that the era of private space tourism will officially begin. Not only Blue Origin, but also billionaires like Elon Musk's SpaceX and Richard Branson's Virgin Galactic are rushing to establish space exploration companies and enter the space tourism industry. Considering that hundreds of passengers are already eagerly booking current space tourism products that allow only about five minutes to see the blue Earth, the market potential is expected to be bright. If numerous legal issues to be resolved during the commercialization process are overcome and travel costs steadily decrease, it is anticipated that many people will be able to use these services.

According to CNBC, on the 14th (local time), Blue Origin announced that it plans to launch its first manned rocket into space as early as April to officially start its space tourism business. This announcement came simultaneously with the successful 14th test flight of Blue Origin's privately developed space travel rocket, 'New Shepard.' This spacecraft is designed to soar up to an altitude of 100 km, known as the boundary where 'outer space' begins, and provide about five minutes of weightlessness experience for short-term space tourism.

Virgin Galactic and SpaceX are also reportedly planning to launch similar space tourism package products within this year. During a flight lasting about two hours, passengers can ascend to the upper atmosphere and see the blue Earth, which has already attracted hundreds of waiting passengers who have made reservations. The price is around $200,000 to $300,000, approximately 300 million Korean won. Although it is still a difficult trip for the general public to dream of, the world's wealthy are eager to embark on space travel. This is because the price is much cheaper compared to past private space travel costs.

[Image source=Yonhap News]

In fact, in the early 2000s, it was much more expensive. Private space tourism began in the 1990s after the collapse of the Soviet Union, when the Russian Federal Space Agency started selling space tourism packages that allowed people to stay for about a week at the International Space Station (ISS). At that time, the price was $20 million per person, which is over 20 billion Korean won in today's value. Nevertheless, seven wealthy individuals reportedly paid this amount and traveled to space. Moreover, this space tourism was suspended for a while after the Russian Federal Space Agency began exporting rockets to the United States in 2009.

The first person to use this Russian space product was Dennis Tito, an American billionaire. He was originally an engineer at NASA, but left the agency after NASA drastically reduced major rocket launch projects, including the moon exploration project, as part of the post-Soviet system competition and underwent large-scale restructuring. Tito made a fortune as a financial expert on Wall Street and willingly paid the $20 million to the Russian Federal Space Agency to go to space, reportedly because going to space had been his dream since childhood.

With space tourism prices dropping to the $200,000 to $300,000 range, the price has indeed decreased significantly. It is expected that prices will continue to fall at an even faster pace. The industry anticipates that, similar to the early days of aviation, the boarding price for private spacecraft will rapidly decrease. Elon Musk has even announced plans for moon tourism and further, Mars tourism businesses.

[Image source=Yonhap News]

However, there are still many hurdles to overcome. Although technological development is progressing rapidly and the safety of spacecraft is improving, laws regarding these spacecraft have not yet been established. While rockets and launch vehicles under national space agencies such as NASA are exempt from certain regulations, it has not been properly discussed whether private company-owned spacecraft should be subject to aviation laws. Since outer space has no nationality, no country's laws apply, which remains a challenge to be addressed.

Until passing through the atmosphere, aviation laws apply, and various safety regulations and flight protocols of the respective country are enforced. However, once in outer space, it becomes difficult for any country to intervene in any incidents. In the United States, there are already concerns that if moon tourism begins, footprints left by Neil Armstrong from Apollo 11 or the American flag planted on the moon could be damaged. Since no country's laws apply on the moon either, there are no laws to prevent damage or theft, and the U.S. government cannot manage the site. These legal issues are pointed out as challenges that the international community must resolve in the future.