A total of 17 people were injured after the paddle steamer collided with the Brodick Pier at Wawerley Oran.
“Several people have been taken to hospital,” the Maritime and Coastguard Agency (MCA) said.
Police and paramedics were called to the scene and Coastguard rescue teams set up a helicopter landing site nearby.
The MCA said the ship was believed to have had 213 passengers and 26 crew on board when it hit the waterway.
A Coastguard rescue helicopter and and air ambulance were dispatched to Oran.
A passenger named Graham McWilliams told the BBC Scotland’s The Nine about the moment of the collision.
He said: “Everything seemed pretty normal when we got to the dock.
“Then suddenly there was an accident, there was a loud noise and the boat stopped very quickly.
He added: “There was a woman that I saw that literally flew by the window.”
Mr McWilliams said passengers were still moving around Brodick’s ferry terminal hours after the crash.
He said it was unclear whether they could leave the island or find accommodation for them
Rita McLeod, who was waiting to climb Waverley, said she saw people being taken to the ambulance.
“We were waiting to enter when it crashed,” he said. “It first came to Sagittarius. It came very quickly.”
“We saw a lot of people lying there, a few people got down. There were people in the ambulance.
“We’ve seen a lot of people, shaking badly, coming back.”
The ship was at Brodick around 17.00 after leaving Greenwich in the morning.
Another eyewitness saw the accident from the departure terminal while waiting for the ride.
Anne Cochrane from Bishop Briggs near Glasgow said: “It just fell into a hole on the way back from Holy Isle. We were just stuck in the departure terminal. We had no information.”
The incident was reported to the Marine Accident Investigation Branch.
Wait two years
Waverly started the journey for the first time in two years in less than two years, an event that was delayed by itself “due to unexpected technology and administrative problems.”
Described as the world’s last beach paddle steamer, the ship missed the 2019 season awaiting emergency repairs.
A fundraising application was launched in June 2019 and reached its target in December after receiving a grant of m 1m from the Scottish Government to assist in the recovery.
The paddle steamer, built by A&J Inglis in Glasgow and first launched in October 1944, had previously been involved in accidents.
It hit the brakes in June 2009 with 70,000 passengers in Dunun, 12 of whom were slightly injured.
19 197 July It was severely damaged when rocks hit near Dunun.
In 2017, it was involved in another clash in Rothschild.
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