While fish processing had historically been a mainstay of its economy, tourism is becoming increasingly important. The City and Store are the only local employers. Transportation Tenakee Springs is dependent on seaplanes and the Alaska Marine Highway for transport. The City owns a seaplane base, and scheduled or chartered float planes are available from Juneau. The State Ferry provides passenger transportation only, since there are no vehicle landing facilities or local roads in Tenakee.
Barges deliver fuel and goods six times a year.
The marine facilities include a small boat harbor and ferry terminal. Snyder' Mercantile owns a fuel dock. Climate Tenakee Springs has a maritime climate with cool summers and mild winters. The highest recorded temperature is 84, and the lowest recorded temperature is 3. Total precipitation averages 69 inches a year, with 62 inches of snow.