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Space tourism used to be a complete imagination, but it has gradually evolved and captured the interest of thrill-seekers, space enthusiasts, and adventurers worldwide. This new industry has emerged with the introduction of commercial space travel, which has contributed to the growth of tourism industry. Space tourism involves considerable challenges in terms of sustainability and environmental impact, even though it has great potential for generating growth in the economy and breakthroughs in technology. This study investigates the developing field of space tourism, concentrating on Kiruna, Sweden, a region at the forefront of this new industry due to its advantageous location and space infrastructure. Using a combination of survey and literature review, the study examined the economic benefit, educational contributions, and sustainability concerns while assessing the public knowledge and perceptions regarding the practice of space tourism in Sweden. The findings revealed that while the space industry is growing in Sweden due to the existence of Esrange Space Centre, contributing to educational advancement, economic growth, job creation and investment, the overall awareness among population in Sweden remains moderate. In addition, there is a great concern around environment impacts, such as carbon emissions and disruptions to local ecosystems and Sámi people. Kiruna can take the lead in sustainable space tourism in the future. Kiruna may become a role model for ethical space exploration by promoting conserving the environment, raising public awareness, and utilising its educational advantages.