Mattel got double-duty out of this model. As pictured here, it is the Bubble-O-Bill Space Ship Bubble Pipe. The same piece is used on top of a tin hat as the Bubble-O-Bill Bubble Hat (listed in the Tin category).
The pipe came with a bubble solution packet, which you use to fill the bubble pipe. Then blow into the tube for tons of bubbles. Card says, "Spill proof, Safe, Sanitary."
As you can see, some of the pipes were yellow on top and red on the bottom, and others were reversed.