The jet-ski operators originally asked 180,000 baht for the damage but eventually settled for 85,000 baht.
Yesterday's incident is the latest in a continuing string of disputes over jet-ski damage on Patong beach.
One of the riders involved was a 14-year-old girl, raising issues about whether there is an age limit for jet-skis. Several of the serious crashes over the years have involved children.
One Australian tourist who was at the scene said he did not sense any intimidation in yesterday's dispute but others were ''quite traumatised by the ordeal.''
''It's not the kind of thing you expect to have happen on holidays,'' he said, preferring to remain anonymous.
There was no act of force or aggression, the man said. ''But we were playing the game.''
In response to the suggestion that the dispute be mediated at Kathu Police Station, which oversees Patong, the operators said that moving to the police station would mean starting all over again at the original 180,000 baht figure.
Well-known jet-ski manager Winai ''JJ'' Naiman was involved in discussions. His English skills are better than most of the Patong jet-ski operators.
The language barrier posed a difficulty, Phuketwan was told. Talks on the beach went on for about three hours, the Australian holidaymaker said.
Jet-ski operators did insist on at least one person staying on the beach as negotiations concluded and the decision was made to pay up.
The holidaymaker agreed that the payment was ''exaggerated'' and more than enough to cover the damage to the jet-skis.
Phuket's reputation will continue to be damaged by jet-ski disputes until a solution is found.
The seven-year phase-out of all jet-skis on Phuket failed abysmally. Jet-skis even continue to operate on some Phuket beaches where they are not permitted.
The insurance scheme designed to end haggling over damages only covers the first 50,000 baht, so almost every dispute begins with a claim for a high cash figure in compensation.
Even disputes over small amounts are complicated by claims for what's now a standard fee of 16,000 baht to cover the time the jet-ski might be under repair and out of the water, another aspect not covered by insurance.
Phuket's honorary consuls have suggested that comprehensive insurance should be compulsory for all of Phuket's jet-skis.
Operators who say that comprehensive insurance is too costly only have to increase their hiring rates, which are currently reported to be 2000 baht for 40 minutes.
Phuketwan does not get to hear about all jet-ski disputes, only a small number of them. Those that are mediated by Patong police are recorded. Disputes on the beach usually are settled at excessive cost and not recorded.
The advice to people involved in disputes is to go to Patong police for mediation and to contact the local honorary consul or call an embassy in Bangkok.
Jet-skis are likely to be raised at the next regular three-monthly meeting between Phuket's honorary consuls and Phuket's governor. The last time they met was in September, 2012.