Sunday, November 23, 2014

Space Tourism - Waste of Funding?

Photograph: Phillip Toledano
Credit: theguardian.com
Stéphane Israël, CEO and Chairman of the global-leader of launch service providers (launcher of ESA's Rosetta), Arianespace SA, stated that because space tourism does not benefit enough people, and given "a new space race" between India, China, the United States, and other nations (that is allegedly underway), space tourism should not be prioritized by government funding. Let me explain why I think he needs to reconsider.

According to The Australian Financial Review and The Sydney Morning Herald, which reported on an interview between Israël and Fairfax Media, Australasia's leading multi-platform media company (and publisher of AFR and SMH), Arianespace's chief executive has said the he does not believe in space tourism - it even is a waste of funding. In Israël's opinion, tourism operations, such as Virgin Galactic's and potentially SpaceX's (being also a strong competitive threat to Arianespace's cargo business due to SpaceX gaining market share and continuously reducing costs - economies of scale), should not be a priority for government funding. "But he also said government support and funding should be kept for space programs that focused on helping as many people as possible rather than wealthy space tourists on services like Virgin Galactic." 

"If I had a dream it would be more about using space to deliver global connections to humanity than a few seconds of space tourism." - Stéphane Israël. I ask, why not fund both?

To coarsely sum up my understanding of Israël's opinion:
  1. A new, competitive space race is underway, so scientific exploration should be funded, exclusively, and funding should not be wasted on space tourism.
  2. Space tourism does not benefit enough people, so, again, funding should not be wasted on it.
I understand his points, but I have to disagree. The existence of a space race, similar to the one between the U.S. and the Soviet Union, I find to be highly unlikely. Today, collaboration on scientific ventures as well as the sharing of recently gained scientific and technological insight between nations is quite common. The cooperation on generating new ideas, designing new technology, and executing marvelous missions, speak against the threat of a new space race. Today, value is found in sharing and collaboration, rather than in hoarding and isolation. I do think that scientific exploration and research in space deserve more funding than it currently has access to - for the benefit of humanity; however, my point is: that's simply not a good reason to stop, or neglect, assistive funding for space tourism operators. There is a greater, potential economic impact to be achieved - a reality that should be embraced rather than rejected.

While by 2022 according to Reuters, "the space tourism industry ... is expected to be worth $1 billion," the three following types of impact from space tourism, all which call for innovation in products and services, create a chain reaction, a multiplier effect, that strongly amplifies value for the global economy:
  1. There is a direct impact from spending on inputs, such as engines, computers, other resources necessary to manufacture space vessels, build ports and facilities. While the salaries of thousands of employees will be used to purchase consumer goods and services, supporting livelihoods and creating substantial economic activity.
  2. In supplier industries, there is an indirect impact from the spending on inputs, such as composites, raw materials, electrical wiring, and semi-conductors (and so on) to build components. And here again, employee salaries in the supplier industry will continuously be utilized to purchase consumer goods and services, positively impacting local, state, as well as national economies.
  3. An induced impact, on consumer goods and services industries, as housing, entertainment, food, and clothing, is generating benefits down the line due to the multiplier effect.
It does so much more than simply serving the wealthy end-consumers. Space tourism is a great, innovative addition to the global economy - a brand new industry - that eventually supports itself from paying end-consumers at an increasing demand rate with potentially declining ticket prices. Furthermore, for new and innovative technologies and software, that are being developed here, other application will ultimately be found. 

by Peter Steenhuis

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