A watercraft has an elongate hull having an arcuately shaped bow and a propulsion system including a flow generator coupled thereto. A shroud extends below a forward portion of the hull, and in combination with said hull defines a conduit therethrough with the flow generator positioned in the conduit. The arcuately shaped bow and the conduit in combination at least partially form a funnel shaped forward-to-aft fluid path for water flow induced by the flow generator. The flow generator in operation produces a forward thrust vector and a Bernoulli thrust vector created by the forward-to-aft fluid flow of water flow along the partial funnel shaped forward-to-aft fluid path.