It is one of the initial sponsors of the X-prize 2, meaning the Manx name will be prominently displayed in a promotional video and other marketing material. It will be distributed to almost every media organisation in the Western world.

The X-prize 2 has been launched as a sequel to the first X-prize of 10 million US dollars that was won in October by a craft called SpaceShipOne that left the Earth's atmosphere and entered space.

While several large corporate sponsors such as 7 Up and M&M's paid $1 million dollars and the State of New Mexico $10 million, the Island was able to get equal billing rights for the bargain price of $15,000.

The deal was made possible by the close friendship of Manxman Chris Stott, who lives in the States, and the X-prize organiser, Dr Peter Diamandis.

Chris said: 'The Isle of Man government has done really well on this, getting equal billing and equal naming rights with the other sponsors for a fraction of the cost. I was invited to go out to the launch, and the night before they had one of their original sponsors pull out. It was almost midnight when he said this and because the foundation is run on a shoestring, hand to mouth, they didn't have the money to make the video to send out to the media. They were $15,000 short and the guys in the Isle of Man Government stepped in and helped at the last minute.'

He added that the quick decision of the government to invest had greatly impressed the X-prize organisers and participants, and raised the profile of the Island in the right quarters.

'The idea is that when guys are thinking of setting up in the space travel industry and need to have an internationally centred headquarters, the Isle of Man can provide that. Virgin Galactic Isle of Man Ltd, for instance. I will represent the Island on a "visioneering board" where the only other government representative is from the USA. We will be there from the beginning of this new industry.

'Tim Craine and Jane Dellar looked at the opportunity and came back within 24 hours with the money. This blew them away. They have never seen a government or corporation react so fast. The video being sent to the media will have an endorsement by Peter Diamandis for the Isle of Man and its potential as a place for space travel industry businesses to locate their company.'

He said the high profile would also give the Island access to very influential figures in related e-commerce industries who may then consider it in future location decisions within their own companies.

'Our involvement also gives a direct feed into the e-commerce community to build upon existing brand identity there. Paul Allen from Microsoft sponsored the winning X-prize team. Other sponsors include Elon Musk, the founder of PayPal, and John Carmack, the founder of ID Software which makes the computer game Doom. These are all market areas the Island is specifically targeting and we have a seat at their table.'

The £10 million X-prize was won earlier this year by a team from Mojave Aerospace Ventures (MAV), in their craft SpaceShipOne. The ship, which cost $20 million to build and was developed by Burt Rutan, blasted out of the Earth's atmosphere to a height of 112 kilometres — twice in the space of five days in early October — to secure the money.

The prize was conceived by the Ansari family to encourage the engagement of private individuals in the space race. Now all the original teams taking part will compete for the X-prize 2 and try to complete an orbit of the Earth.