We design a quantum repeater architecture using individual $^{167}$Er ions doped into Y$_2$SiO$_5$ crystal. This ion is a promising candidate for a repeater protocol because of its long hyperfine coherence time in addition to its ability to emit photons within the telecommunication wavelength range. To distribute entanglement over a long distance, we propose two different swapping gates between nearby ions using the exchange of virtual cavity photons and the electric dipole-dipole interaction. We analyze their expected performance, and discuss their strengths and weaknesses. Then, we show that a post-selection approach can be implemented to improve the gate fidelity of the virtual photon exchange scheme by monitoring cavity emission. Finally, we use our results for the swapping gates to estimate the end-to-end fidelity and distribution rate for the protocol.