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What you need to know about investing in space tourism

22/08/2021

With Richard Branson and Jeff Bezos having both recently completed space flights, space tourism is a hot topic. It signals the fact that space travel is getting closer and closer to becoming accessible to more and more people. 

While it’s still a relatively young sector, space tourism is sparking the interest of investors across the world. Shortly before Bezos’ trip, analysts at UBS proclaimed that “by c2030, we estimate space tourism will be a $3bn-plus p.a. opportunity growing at double digit-rates”. 

Billionaires speed up access

Much has been made of the fact that billionaires like Branson, Bezos and Musk are exploring space travel while the world is reeling from the impact – including financially – of the COVID-19 pandemic. However, the level of investment needed to make space tourism happen is substantial, with many pointing out that “billionaires providing upfront investments has stimulated the space market and made space more accessible – and profitable”. 

This interest and investment has also opened up more opportunities to individual investors looking to capitalise on a growing market. 

Where is space investing now?

In mid-July, after Branson’s space flight, Seraphim Space Investment Trust made its London debut, with shares climbing quickly after its launch. It’s not the only option out there, though, for those interested in investing in space tourism. Satellite internet company OneWeb, for example, is planning on launching more satellites before mid-2022. However, this comes after initial problems, when the company had to be rescued from bankruptcy.

Some are advising that investors don’t “put all their eggs in one basket”, with more space-focused funds and trusts likely to become available as investment in the industry grows. Says Ben Laidler of eToro, “Be diversified, if only for the fact that there will be more”.

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

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