Klukwan, Inc. has approved lending $2 million to Chilkat Indian Village for the purchase of a dock and ferry boat, as well as to cover start-up expenses.

Klukwan, Inc. notified shareholders in a letter dated June 17 that the board of trustees of the general income trust had voted to lend the tribal village government money to purchase the Portage Cove dock and catamaran ferry.

The village Native corporation closed the ferry service in spring of 2008 when it could no longer meet operating expenses.

The private loan comes in the wake of Alaska Gov. Sean Parnell’s veto of state money from the cruise ship head tax to the village.

The village valued the Chilkat Express catamaran and Chilkat Cruises dock at $1.5 million in its application to the state for money. The ferry service would be used to transport tourists between Skagway and Haines.

The additional money would have covered initial business operations as well as maintenance and repairs on the boat, according to the application.

Kimberly Strong, president of Chilkat Indian Village, declined to comment on the loan.

Strong said the tourism arm of the village government, Jilkaat Kwaan Cultural Heritage Center, would like to increase the number of tours offered in the village.

Although villagers privately have offered tours of Klukwan for several years, the village’s first tours were offered last week to passengers aboard a Princess Cruise Lines ship docking in Haines.

“Until we can get transportation from Skagway, we’ll do what we can here,” Strong said.

If the village offers ferry service, the boat’s capacity would be 60 passengers, providing room for tourists for other excursions or independent travelers, Strong said.

The “soft opening” has gone well, said Strong, after the first tour July 6 took 14 people on a four-hour trip up the highway to the village.

The tourists visited the village’s traditional knowledge camps where they were able to view salmon processing and wood carving, as well as Tlingit singing and dancing in a longhouse. Lunch was served at the village’s new Hospitality House.

“Everybody was pretty pleased with the tour,” said Strong, adding that tourists filled out a survey upon completion.

The tour is limited by the size of the village hospitality house and its bus, which hold 40 and 27 people, respectively. Up to three tours a day could be offered, Strong said.

“It’s a small area. We’re not looking at a real huge business. We’re looking at employment opportunities.”