Three planned spaceports in Cornwall and Scotland could contribute up to £1.407billion to the economy if the wider spillover effects are taken into account, new research shows.
The study revealed the planned spaceport in Newquay - where Sir Richard Branson plans to launch his Virgin Orbit satellites - could provide £80million to the UK economy, based on the average return of £4 per £1 of public investment into the project.
As well as providing up to £80 million - or £240 million with spillover - to the UK economy, Spaceport Cornwall is also expected to create 448 jobs and £200 million of GVA.
Space Hub Sutherland could bring in £69.2million with the same return on investment applied, while Glasgow Spaceport could return a staggering £320million, based on the £80million in funding provided for Prestwick Airport.
The research found public investments in space produces higher returns on average than typical innovation investments.
For earth observation applications, £1 of investment provides an average direct return of £2 to £4, while telecoms brings £6 to £7 and navigation returns £4 to £5.
Analysis was carried out by holiday cottages provider Stay in Cornwall, using research gathered from sources including the UK Space Agency, London Economics, Spaceport Cornwall, Department for Business, Energy & Industrial Strategy and the Higher Education Statistics Agency (HESA).
The Spaceport Case File collates official reports to reveal the potential economic, environmental and academic impact of Spaceport Cornwall, whereby the site will play a crucial role in supporting the UK’s satellite launches.
This potential return on investment could be even higher if the UK maintains its membership with the European Space Agency, which brings £3 to £4 of direct return per £1 of funding.
In 2018, European Union-funded programmes accounted for £372 million - equivalent to 2.5% of total industry income.
With a reported seven sites pursuing spaceport status in the UK in Scotland, Wales and England, the return on global small launch investment could be as high as £1.784billion if the remaining five sites receive the same funding as Sutherland.
Shannon Keary, communications manager of Stay in Cornwall, said: “As a holiday provider for the local area, we feel that Spaceport Cornwall is an extremely interesting and unique point of interest for people looking to visit Newquay and the surrounding areas.
“Our findings show the many benefits that the spaceport will have on both the local community and for the UK's economy as a whole.
More South West tech stories
This includes how the spaceport is expected to support the UK's government plans to capitalise on the predicted £10billion global launch market, as well as its huge potential for return on investment when it comes to potential tourism, research capabilities and employment.”
In November 2019, Cornwall’s Spaceport was given the go-ahead after the county council approved a £10.3million grant.
There were demonstrations inside and outside the Cornwall Council chamber as environmentalists opposed the plan for a £20million satellite launch facility in the Duchy.
Prior to the meeting, protesters gathered from campaign group Extinction Rebellion and others opposed to the Spaceport project, which would involve Sir Richard Branson's Virgin Orbit starting horizontal launches of satellites.
But councillors agreed to hand over the money to develop Cornwall Newquay Airport. Spaceport Cornwall is proposed to create the first horizontal space launch facility in the UK.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: @WTelfordHerald - LinkedIn: www.linkedin.com - Facebook: www.facebook.com/william.telford.5473
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click here.
And visit the Business Live South West LinkedIn page here
It will be used to send small satellites into space using existing aircraft technology to take them into the sky before they are launched from specialist equipment under the wing of the aircraft.
Virgin Orbit has signed an agreement with Spaceport Cornwall which would see it launching its European operations from the facility.
The grant from Cornwall Council is part of a £20million package for the Spaceport which also includes £7million from the UK Space Agency and £2.5millon from Virgin Orbit.
