A personal watercraft comprises at least one seat including a driver seating portion and at least one passenger seating portion. At least one sensor is disposed on the watercraft for detecting at least one of a presence and an absence of a passenger on the watercraft. A control unit is electrically connected to the at least one sensor. The control unit enters a first control mode in response to a signal received from the at least one sensor indicative of the presence of a passenger on the watercraft. The control unit prevents at least one performance characteristic of the watercraft from exceeding a predetermined value when in the first control mode.