Tours of the SS Klondike and Dredge No. 4 near Dawson City will be run by private businesses for the upcoming tourist season, Yukon MP Ryan Leef announced this morning.

Operators interested in running the tours must apply by April 2.

"Tour operators will be free to determine the amount charged for the clients, and Parks Canada will work with tourism groups to help them provide a safe and enjoyable experience at these sites,” Leef told a news conference, with the SS Klondike featured prominently in the background.

The federal department will also enter into formal discussions with the Friends of the Klondike Corridor association regarding the establishment of a new friends organization.

Parks Canada will continue to be responsible for the operation and maintenance of both the Dredge and the SS Klondike.

As well, it will continue to develop technological and print media tools for visitors who wish to explore the sites on their own.

"Parks Canada is committed that the SS Klondike and Dredge No. 4 remain enjoyable and meaningful experiences for visitors,” said Leef.

"It's a pilot project; we're going to learn from it, we're going to grow from it and we'll take the best of what's going to come out of this season,” he said.

Leef highlighted the Harper government's commitment to return Canada to balanced budgets as reasoning behind the decision to outsource tour operations at the two sites.

He could not provide clear cost-saving estimates, but argued out-sourcing will not only cut costs but boost the local economy.

"We're projecting an increase of tourism in the Yukon this year, with other businesses taking a hand in marketing the SS Klondike and the Dredge from an entrepreneurial point of view that's certainly going to improve the state of the economy here in Whitehorse and Dawson City, so that's going to be a good news story,” said Leef.

Anne Morin, the Yukon field unit superintendent for Parks, noted 18 tour operators have expressed interest in an opportunity to run tours at one of the two sites.

Moving forward, her department will contact each of the businesses that has expressed interest, inviting them to apply.

"Both the minister of Tourism for the Yukon (Mike Nixon) and I are very confident that these solutions generated by Yukon stakeholders and Yukon people will ensure that these sites and services and the excellent quality delivered by Parks Canada over the years will be maintained well into the future,” said Leef.

Said Nixon: "It's safe to say that this is a great day for Yukon, it's a great day for the Yukon tourism economy.”

The Parks Canada cuts affected approximately 30 jobs in the Yukon.

Private businesses have managed SS Klondike tours in the past.