The commercial space industry has seen growth in recent years, with an increasing number of rocket launches and satellites being sent into orbit. This growth has led to the development of new spaceports around the world, facilities designed specifically for launching spacecraft. While spaceports play a critical role in enabling access to space, they also have the potential to significantly impact the economies of the local communities and regions where they are located.
Direct Economic Impact
The most immediate economic impact of a spaceport comes from the jobs and economic activity directly associated with its construction and operation. Building a spaceport is a major infrastructure project that requires a wide range of skills, from construction and engineering to project management and logistics. This creates jobs across multiple sectors and can provide a boost to local businesses that supply materials or services to support the project.
Once operational, spaceports employ people in a variety of roles including technical positions like engineers and technicians as well as support staff like security, administration, and facilities maintenance. These are often high-paying jobs in STEM fields that can help attract and retain skilled talent in the region.
For example, Spaceport America in New Mexico had a direct impact of 549 jobs and $46 million in labor income in 2022. The Kennedy Space Center in Florida supports even more jobs, with over 10,000 civil servants and contractors directly employed at the spaceport. These direct jobs are a significant driver of economic activity in their respective regions.
Spaceports also generate revenue through launch fees, payload processing, and leasing facilities to commercial customers. Spaceport America generated $7.5 million in revenue in 2022, not including state funding. As launch cadence increases, spaceports have the potential to bring in significant revenue that can support the local tax base and fund public services and infrastructure.
Indirect and Induced Effects
Beyond the direct impacts, spaceports also generate indirect and induced economic effects in the surrounding region. Indirect effects occur through spaceport supply chains, as the money spent on goods and services used in spaceport operations recirculates through other local businesses. Induced effects occur as spaceport employees spend their wages on housing, retail, dining, and other services in the local economy, creating a multiplier effect.
An economic impact study of Spaceport America estimated that, including direct, indirect, and induced impacts, the spaceport generated a total of 811 jobs, $138 million in economic output, and $60 million in value added for the state of New Mexico in 2022. In the two counties closest to the spaceport, the total economic impact was $62.8 million in Sierra County and $58 million in Doña Ana County.
The economic ripple effects of spaceports can be even more pronounced for larger, well-established facilities like the Kennedy Space Center. A 2021 economic impact report found that KSC generated $5.25 billion in economic output, $2.77 billion in value added, and supported over 27,000 total jobs for the state of Florida when considering direct, indirect, and induced impacts. The surrounding Space Coast region experienced an outsized share of these benefits.
Wallops Flight Facility in Virginia is another example of a spaceport driving significant regional economic impacts. A 2023 study by Old Dominion University found that the Wallops Island Aerospace Cluster, anchored by the spaceport, supported between 3,300 and 4,600 jobs annually in Virginia from 2018 to 2022. The cluster contributed nearly $36.8 million per year to the state’s GDP over that period.
These case studies demonstrate how the economic benefits of spaceports extend well beyond the fenceline, supporting jobs and economic activity across a wide range of industries in the surrounding region. As launch frequency increases at spaceports across the country, these indirect and induced impacts are likely to grow even further.
Attracting New Business and Investment
In addition to the economic activity generated by spaceport operations, these facilities can also help attract new businesses and investment to a region. Many companies working in the space industry, from launch providers to satellite manufacturers, prefer to locate facilities near spaceports for logistical efficiency. Other firms may be drawn to the area to tap into the skilled workforce and innovation ecosystem that develops around the spaceport.
Spaceport America has five aerospace tenants located on-site, including Virgin Galactic, SpinLaunch, and UP Aerospace, that conduct research, manufacturing, and testing. The Kennedy Space Center hosts even more commercial tenants and partners, including SpaceX, Blue Origin, Boeing, Lockheed Martin and others. Having multiple space companies clustered together can create synergies and knowledge spillovers that spur further innovation and economic development.
Regions with spaceports can market themselves as hubs for the commercial space industry in order to attract investment from companies looking to expand. Florida’s Space Coast has been particularly successful in this regard, with the presence of KSC helping to attract a thriving aerospace sector. Over 17,000 aerospace workers are now employed in the region at more than 200 companies.
The advanced technologies used in commercial spaceflight can also transfer to other industries, driving economic diversification. The presence of a spaceport can attract research and development in fields like advanced manufacturing, robotics, and materials science that have applications beyond aerospace. Spaceport regions could see the emergence of new startups and high-tech clusters as entrepreneurs look to commercialize these technologies.
Developing a Skilled Workforce
Spaceports can play an important role in developing the skilled technical workforce needed to support the growing space industry. Many spaceports partner with local schools, community colleges, and universities to develop training programs and curricula focused on aerospace-related skills. This can create a pipeline of talent for spaceport tenants and other local employers while also providing pathways to high-paying jobs for residents.
The Kennedy Space Center has long-standing partnerships with universities across Florida to support STEM education and workforce development. The spaceport offers internships and apprenticeship programs to give students hands-on experience working on real space missions. KSC also collaborates with local schools to offer space-focused curricula and inspire the next generation of space industry professionals.
Spaceport America also engages in STEM outreach including classroom visits and hosting the annual Spaceport America Cup, a university rocket engineering competition. These educational initiatives can help build a strong regional talent base in aerospace and related fields.
Workforce development around spaceports is not limited to STEM positions. Spaceport operations also create jobs in areas like construction, security, fire and medical services, and facilities maintenance that can provide employment opportunities across a range of skill levels. Investing in training programs for these roles can ensure that a broad segment of the local population is able to access the economic benefits of the spaceport.
Tourism and Education
Spaceports have the potential to become significant tourist attractions, drawing visitors interested in seeing rocket launches and learning about space technology. While still a developing industry, space tourism is projected to grow significantly in the coming years, driven by companies like Virgin Galactic and Blue Origin that are working to make human spaceflight more accessible.
Some spaceports are already investing in visitor facilities and experiences to capture this tourism opportunity. Spaceport America has a visitor center that offers public tours of the facility and is planning to expand its visitor experience as Virgin Galactic begins commercial space tourism flights. The Kennedy Space Center Visitor Complex has long been a major tourist draw for the Space Coast, attracting over 1.5 million visitors annually to see historic launch sites and learn about NASA missions.
Even spaceports not involved in space tourism can become educational destinations. The NASA Wallops Visitor Center in Virginia offers exhibits and programs for the public to learn about the science and engineering of NASA’s suborbital rocket and balloon missions that launch from the nearby Wallops Flight Facility. Spaceports focused on research and satellite launches could develop similar visitor experiences focused on the science and technology of spaceflight. This can provide an additional revenue stream for the spaceport while also inspiring the next generation of scientists and engineers.
Challenges and Considerations
While spaceports offer many potential economic benefits, there are also challenges and considerations that communities must weigh. One is the significant upfront investment required to construct a spaceport, which can run into the hundreds of millions of dollars. Securing this funding often requires a combination of public and private investment, and there is always the risk that projected revenues may not materialize.
Another challenge is the regulatory environment around commercial spaceflight. Spaceports must receive a license from the Federal Aviation Administration and comply with a range of safety and environmental regulations. This can create uncertainty and delays in the development process. Spaceports located near populated areas or sensitive environments may face particular scrutiny and opposition from local stakeholders concerned about issues like noise and ecological impacts.
There are also questions about the geographic distribution of economic impacts from spaceports. The specialized nature of many spaceport jobs means that a significant portion of the workforce may be recruited from outside the region, at least initially. This could limit the economic benefits for the local community. Additionally, if a spaceport is located far from population centers, the indirect and induced economic impacts may be more diffuse.
Despite these challenges, many regions view spaceports as a key driver of future economic development. By taking a proactive approach to workforce development, business attraction, and community engagement, spaceport communities can work to maximize the local economic benefits. As the commercial space industry continues to grow, regions that establish themselves as hubs for space transportation and innovation will be well-positioned to capitalize on this exciting frontier.
Summary
Spaceports are more than just launch pads – they are economic engines with the potential to transform the communities where they are located. From direct job creation to attracting new industries and inspiring the next generation, spaceports can drive significant economic growth and diversification. As the commercial space race heats up, regions across the globe are angling to establish themselves as gateways to the final frontier.
However, realizing the full economic potential of spaceports requires careful planning and execution. Communities must weigh the significant upfront investments and regulatory hurdles against the projected long-term benefits. Ensuring that economic gains are shared broadly across the local population will require proactive efforts in areas like workforce development and small business support.
The economic impact of spaceports is already being felt in communities like New Mexico’s Truth or Consequences near Spaceport America, Florida’s Space Coast around the Kennedy Space Center, and Virginia’s Eastern Shore in the vicinity of Wallops Flight Facility. As these spaceports continue to grow and new commercial launch sites come online in the coming years, their economic footprint is likely to expand even further.
At the same time, the economic future of spaceports is not without risk. The commercial space industry is still in its early stages, and the long-term sustainability of the market for launch services remains to be seen. Spaceports that are overly dependent on a single anchor tenant could face difficulties if that company encounters setbacks. Competition between spaceports to attract a limited pool of customers could also drive launch prices down, reducing revenues.
To mitigate these risks, spaceports are working to diversify their customer base and revenue streams. Many are investing in facilities to support a range of commercial space activities beyond just launches, such as satellite manufacturing, testing, and payload processing. Some are exploring ways to tap into adjacent markets like high-altitude pseudo-satellites and autonomous aerial systems. Spaceports are also working to build partnerships with a wide range of commercial, government, and academic customers to ensure a steady flow of business.
Despite the challenges, the economic potential of spaceports is undeniable. By leveraging their unique infrastructure and geographic advantages, spaceports can position themselves as key nodes in the growing space economy. As the industry evolves, spaceports that are able to adapt to changing market conditions and provide value to a diverse range of customers will be well-positioned for success.
In the coming decades, spaceports around the world will play an increasingly important role in enabling the next era of space exploration and commercialization. From suborbital space tourism flights to missions to the Moon, Mars, and beyond, these facilities will serve as the gateways to the final frontier. In the process, they will generate economic activity, create jobs, and inspire future generations to dream big and reach for the stars.
As more spaceports come online in the coming years, it will be instructive to study their economic impacts and identify best practices for maximizing regional benefits. With the right strategies in place, spaceports have the potential to launch a new era of economic opportunity for communities around the world.
Subscribe to our weekly newsletter which summarizes all articles from the previous week.
