According to local media, operators told police the man accidentally pulled on a hook that unstrapped his harness after confusing the ropes on his parasail.
The man fell into the water and beachgoers rushed him to shore, but he was pronounced dead in hospital.
The man’s wife reportedly filmed the accident.
Police said they had charged the boat operator with reckless driving causing death.
Another man was also being investigated.
The Australian Department of Foreign Affairs and Trade said it was aware of the man’s death and was assisting the family.
It said further details, including the man’s identity, were not being released at this stage.
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