With the launch of Sputnik 1 in 1957, the possibility of commercial space tourism activities was a distant dream. The launch of Sputnik 1 paved the way for a Cold War space era, wherein space activities were linked to political objectives and priorities such as national security or military concerns of the two superpowers of the world, the USA and the USSR. Due to the tremendous technological and Political importance of space, the space powers were reluctant to allow non-governmental factors to explore or exploit outer space. Private investment in outer space was also hindered by high cost and technological risks. It is undeniable that the space Arena has evolved so much that even non state entities are becoming serious actors in Outer space activities especially space tourism. With the advent by the Russian space agency which took private persons to the International Space Station and the rise of private companies such as Virgin Galactic and Space X, space tourism is no more a distant dream. Significant financial investment has also been made to develop reusable launch vehicle technology for the space tourism industry. It is ascertained that in the new future the industry of space tourism will become economical and shall be accessible by all normal people. Space tourism denotes any commercial activity that offers customers direct or indirect experience with space travel. However, there is no legally accepted definition for space tourism so far. Space tourism activities have many different designs ranging from long-term station orbital facilities to short-term orbital or suborbital flights or even parabolic flights in an aircraft exposing the passengers to short-term periods of weightlessness. From the range of activities that happen in the paradigm of space tourism, it shall be understood that space tourism can happen with the use of an aircraft and/or a spacecraft. Depending on where and how such activities actually take place either air law or space law or even both may apply. The two legal regimes have evolved independently from each other and accordingly show vast differences. A variety of legal issues regarding the conduct of space tourism and associated activities arise as a result. This article focuses on understanding what space tourism is and what are the activities that fall in the boundary of space tourism. Having understood that, the next problem is understanding which is the applicable law for the activities of space tourism. This article also focuses on major legal issues such as authorisation to conduct space tourism, registration of the aircraft or spacecraft, liability to passengers and third parties, and the status of passengers. Regarding air law, there are comprehensive regulations for passenger transportation in both international and national legal regime. International space law does not contain detailed regulations for passenger transportation yet. When examining these legal aspects of space tourism and the response by the present legal regime a question naturally arises whether the existing laws are sufficient for space tourism activities or whether the international legal regime shall be updated to deal with such dynamic issues.