A prolonged slump in visitor arrivals has state officials looking to the heavens for help.

What they see is a nascent industry that could provide a jolt to the state's tourism business. Hawai'i's current terrestrial-based tourism sector is in severe decline, and is a key factor behind a major budget deficit and plans to cut pay for state workers. During these tough times, the state is considering spending $500,000 applying to become a federally licensed spaceport.

"Commercial space transportation is clearly a wave of the future that's about to break on many shores, and we are a logical node right at the middle of the Asia-Pacific," said Jim Crisafulli, director of the state's Office of Aerospace Development. "Space planes can also fly right over us, so if we don't provide justification for them landing here, they'll do just that."

Overall, the state plans to spend nearly $900,000 on space-related activities, including about $80,000 a year on aerospace development and $300,000 during the next year on the Pacific International Space Center for Exploration Systems. State officials are seeking federal stimulus money to fund the center, which simulates a lunar base on the Big Island.

The biggest thrust is the area of space tourism. The business is being pioneered by Sir Richard Branson's planned Virgin Galactic space plane service.

Hawai'i isn't the only state targeting the space tourism business.

New Mexico is building a $200 million spaceport and Oklahoma, Florida and a host of other communities nationally and globally are vying for a piece of the space tourism market.

The Federal Aviation Administration estimates that space tourism could be a billion-dollar industry in 20 years. Still, it's unclear how fast that market will develop.

Tickets for Virgin Galactic's suborbital space plane, which plans to start service from New Mexico next year, start at $200,000.

"It's hard to tell whether the industry is ahead of its time, or if some of the launch sites may be too late getting into the game," said Edward Ellegood, space policy analyst and director of aerospace development at Embry-Riddle Aeronautical University in Daytona Beach, Fla. "It might be a really good time, if that industry is really going to take off. But if that industry is not advancing as hoped, then it could be awhile before it develops a sufficient base to really become a viable business proposition for any given spaceport."

House Bill 994, which has been sent to Gov. Linda Lingle, would direct the Department of Transportation and the Hawai'i Tourism Authority to spend $250,000 each on a spaceport license. The bill was not on a list of bills that Lingle expects to veto and could become law without her signature. The $500,000 would pay for an environmental assessment and other costs associated with obtaining the license from the FAA.

The application process could take two to three years and would mark the state's second major foray into aerospace since the late 1980s, when officials considered building a rocket launch pad on the Big Island. That project was postponed amid community opposition, then later abandoned after a change in political will.

In the 1980s, state officials envisioned rockets that would launch vertically. This time they're targeting so called space planes, which take off and land like normal airplanes via runways. Once they reach a high altitude, a rocket pushes the jet into space and the tourists can experience weightlessness.

The only potential spaceport tenant publicly lobbying for Hawai'i's spaceport license is Rocketplane Global. The company has discussed flying suborbital space flights between Honolulu and Kona International Airport in Keahole.

Hawai'i's effort to develop a spaceport is backed by former Gov. George Ariyoshi.

Others think the planned spaceport and other aerospace initiatives are space pork. Aerospace spending comes at a time when the cash-strapped state is cutting back on social services such as meals on wheels and substance abuse and mental health treatment, said Bonnie Bator, a teaching assistant and part-time Puna resident.

"It's a waste of money, especially with everything else being cut," she said. "Why don't we take care of the earthlings? What about the quality of life for children and people with mental health problems?"

Spaceport proponents contend that the payoff for the state could be far more than the $500,000 spent on a license. They argue that Hawai'i has natural advantages over landlocked states. Hawai'i also can use its existing aviation infrastructure, including the 12,000-foot long reef runway at the Honolulu airport, to enter the space tourism market at minimal cost.

Hawai'i's existing tourism-friendly amenities also could provide competitive advantages, said space policy analyst Ellegood.

"Whether customers would rather go to the New Mexico desert after spending $200,000 for their ticket or would rather go to Hawai'i or (Florida's) Kennedy Space Center for that matter, where there's more of a draw, is something to think about," he said.