The vessel – which the owners had only had for about a week – caught alight off Kookaburra Point about 11.15am on Tuesday.

The owner got in and out of the boat as he tried to extinguish the flames, and eventually splashed the fire while in the water.

Tourist Marcus Breier, 13, was filming as the incident unfolded.

“I thought it was going to blow up – I thought the fuel would catch fire,” he said.

“He probably wanted to try to save his boat but it was probably already too late.

“It was already gone.”

Another witness, Mitchell Harvey, spotted black smoke from a distance. 

"We came over and made sure everyone was alright,” he said. 

“I think the owner was a bit frustrated. 

"His wife and kids were fine, but he said he's only had the boat for a week.”

The engine was completely burnt out, along with most of the hull.