MOJAVE, Calif., Feb 19 (Reuters) - Richard Branson's Virgin Galactic venture unveiled a new passenger spacecraft on Friday, nearly 16 months after a fatal accident destroyed its sister ship during a test flight over California's Mojave Desert.

The rollout of the gleaming craft, dubbed Virgin Space Ship Unity, marks Branson's return to a race among rival billionaire entrepreneurs to develop a vehicle that can take thrill-seekers, researchers and commercial customers on short hops into space.

"It's almost too good to be true," Branson said during a ceremony at the Mojave Air and Space Port, about 100 miles (160 km) north of Los Angeles. "When I saw it for the first time, it brought an immediate lump to my throat and tears to my eyes. It was a completely overwhelming moment."