Sept. 4 (Bloomberg) -- The 20,000-square-foot warehouse in North Hollywood, California, where Chris Gilman runs Global Effects Inc. is filled with costumes that turned movie actors into monsters, aliens, knights and astronauts.

Now Gilman, 47, is moving from reel space to real space. An Oscar winner for inventing a system that keeps costumes cool under hot lights, Gilman is designing spacesuits for Washington- based Orbital Outfitters. The company's first client, XCOR Aerospace, is one of a dozen private businesses racing to make suborbital tourism a new category of luxury travel.

The new space racers, including Richard Branson's Virgin Galactic and Jeff Bezos's Blue Origin, are developing aircraft that will provide views of Earth from 60 miles up (almost 100 kilometers) and a feeling of weightlessness in the cabin. Gilman's suit, which may sell for $20,000 at full production, is intended to protect against a loss of pressure that could result in blackouts or death.

``A special effects expert making a real spacesuit is a little unusual, certainly,'' said William Pomerantz, director of space projects for the X Prize Foundation, a nonprofit that offers cash awards for new technologies. At the same time, he said, ``there are a lot of space people not classically trained as aerospace engineers'' who succeed even though ``they're not rocket scientists.''

Suborbital Day-Tripping

Investment in space tourism was $1.2 billion in 2007, a survey by the Personal Spaceflight Federation, a trade group in Washington, showed. Interest in suborbital travel is also high, according to a 2006 study by Futron Corp., an aerospace consulting group in Bethesda, Maryland.

Futron forecast that by 2021, ticket demand will reach 14,000 yearly as the price falls to $50,000 from the $200,000 Virgin Galactic is charging for a seat on its first flight, set for 2010. Mojave, California-based XCOR's ship, the Lynx, is also scheduled to launch that year.

There have been setbacks, including an explosion that killed three workers testing the propellant system of Branson's SpaceShipTwo last year. Also, three rockets failed in testing by Hawthorne, California-based Space Exploration Technologies Corp., started by Elon Musk, founder of PayPal Inc. Branson is the U.K. billionaire who controls Virgin Group Ltd. Bezos is chief executive officer of Amazon.com Inc., the world's largest Internet retailer.

Virgin Galactic, which bills itself as ``the world's first commercial spaceline,'' has collected $40 million in deposits from more than 270 ``astronaut passengers,'' said Carolyn Wincer, head of astronaut sales for the company, also located in Mojave. Each flight will travel at almost 2,500 miles per hour, carrying two pilots and six passengers.

`Lifelong Dream'

Peter Gibson, vice chairman of Montreal-based Desjardins Securities, said he was taking no chances on losing a seat. He sent Virgin Galactic the entire $200,000.

``This is a lifelong dream of mine,'' he said. ``The last thing I want is to watch somebody else do it.''

Gwen Griffin, a spokeswoman for Blue Origin, declined to comment on her company's planned flights.

Gilman's spacewear creation, named the IS-3, for industrial suborbital, looks somewhat like suits he made for films such as ``Space Cowboys.'' He said that while the movie costumes are mere shells, his IS-3 is equipped to safeguard against sudden depressurization.

How much Gilman's product might cost depends on demand, said Jeff Feige, Orbital Outfitters' CEO.

``If we sell 100, maybe they're between $10,000 and $20,000 each,'' he said.

Outfitting Space Tourists

They will be a lot less expensive than gear worn by NASA's astronauts, who fly deeper into space and take space walks. Built by Hamilton Sundstrand, a unit of Hartford, Connecticut- based United Technologies Corp., the NASA spacesuits cost as much as $20 million, said agency spokesman Grey Hautaluoma.

Outfitting space tourists wouldn't interest Hamilton Sundstrand, said spokesman Dan Coulom.

``We're so totally focused on NASA, it would not be an issue for us,'' he said.

While Virgin Galactic has talked with Orbital Outfitters about the IS-3 suits, it hasn't decided whether to buy them, Wincer said.

Life began imitating art for Gilman in 1997. Visiting NASA to conduct research on costumes for the movie ``Deep Impact,'' Gilman said he overheard engineers debating how to keep a hammer from slipping from an astronaut's gloved hand during weightlessness.

Drawing on his knowledge of medieval clothes and sword fighting, Gilman -- who was married in a suit of armor that stands outside his office door -- said he suggested attaching a wrist strap to the hammer.

``The guy said it was awesome,'' he said.

Beyond Hollywood

Gilman says he consulted with NASA on other projects such as designing a spacesuit for female astronauts. He joined Orbital Outfitters in 2006.

He isn't the only Hollywood technician using skills in the world beyond. Mark Setrakian, whose special effects credits include ``Men in Black II,'' works for Applied Minds Inc., a Glendale, California, company helping Northrop Grumman build robots for military and emergency use.

Matthew Upchurch, CEO of Virtuoso, the travel agency representing Virgin Galactic in North and South America and a ticket holder on SpaceShipTwo, is hoping the outfits will be part of the experience.

``Are you kidding? It's the whole psychology of wearing a spacesuit,'' he said. ``It'll be one of my most prized possessions.''

To contact the reporter on this story: Michael Janofsky in Los Angeles at mjanofsky@bloomberg.net.

Last Updated: September 4, 2008 03:01 EDT