Once Virgin Orbit Holdings Inc (VORB.O) filed for bankruptcy, plans for a Kyushu-based spaceport to attract tourists were put on hold.

Oita, home to Japan’s most hot springs, collaborated with Virgin Orbit in 2020 to establish its first Asian spaceport at Oita Airport utilizing a Boeing (BA.N) 747 for horizontal rocket launches.

Virgin Orbit, founded by British billionaire Branson, promoted itself as a military and intelligence satellite launch platform for the U.S. and its allies, including Japan, at a time when Washington and Tokyo worry about China’s space supremacy.

After two rocket launch failures, Japan was supposed to launch tiny satellites from Oita last year, but that didn’t happen.

When Virgin Orbit filed for Chapter 11 bankruptcy protection on Tuesday, ANA Holdings (9202.T) affiliate All Nippon Airlines Trade Co and little-known Japanese satellite development startup iQPS Corp were among the top six creditors.

ANA, due $1.65 million, was a crucial partner for the Oita spaceport, striking a tentative arrangement with Virgin Orbit in 2021 for 20 LauncherOne rocket launches there. ANA said it hoped Virgin Orbit, seeking a buyer, could reorganize and restart operations.

Fukuoka-based iQPS paid a $5.2 million deposit to launch its tiny, lightweight constellation satellites weighing under 100 kilograms (220 pounds).

The bankruptcy filing saddened iQPS, who had thought the situation would improve. “We hope Virgin Orbit will restart for the entire space industry.”

Oita prefecture anticipated the spaceport, comparable to Virgin Orbit’s Cornwall, England facility, would generate 10.2 billion yen ($77.4 million) in economic benefits over five years.

Local merchants made alien-themed items, from passports to “E.T.” bicycles, expecting 240,000 tourists.

Locals hope for a spaceport. “Virgin Orbit may be acquired. However, Oita has several alternatives to reenter a deal with Virgin Orbit since other businesses are exploring horizontal launches, “said Oita University economics lecturer Kunio Ikari.

Oita prefecture declined to comment on Virgin Orbit or its spaceport aspirations. Oita Airport rejected the comment.

Japan intends to land an astronaut on the moon in the second part of the 2020s, although it has also faced recent difficulties.

After an abortive launch in February, Japan’s medium-lift H3 rocket failed in March, hurting its attempts to compete with SpaceX.

In October, the Japanese space agency’s solid-fuel Epsilon rocket carrying iQPS’ tiny satellites failed.

After the failed launches, several analysts suggested Japan rethink its space sector priority.

Jun Nagashima, cyber and space expert, and Nakasone Peace Center consultant, said Japan focuses too much on launches. “With SpaceX releasing economical, reusable rockets, Japan should compete in various space endeavors.”