A small, personal watercraft having an improved ventilating system that provides not only ventilating air but also a shroud for an instrument of the watercraft. A compact exhaust system is also provided that extends on opposite sides of a tunnel in which the jet propulsion unit which powers the watercraft is positioned. Transfer pipes extend across the tunnel and across the watercraft to transfer the exhaust gases from the exhaust manifold to the watercraft trap device and also for providing traps to preclude water from entering the engine through the exhaust system.