It was confirmed all on board the pleasure craft had been rescued. The incident occurred near St. David’s Head with a mayday sent out after 7pm. As the coastguard arranged for lifeboats from St. David’s and Fishguard, two passenger boats rushed to the rescue.
The Newquay Coastguard helicopter was also involved in the rescue.
The Daily Star reported the 23 on board were able to reach one of the passenger ships with lifeboats providing cover.
A coastguard spokeswoman explained: “The passengers are being taken back to St Justinian where they will be met by the St David’s Coastguard rescue team.”
The vessel has pumps on board and is heading toward Porthclais, an inlet harbour near St. David’s, built in the 12th Century.
It is believed to have been a trip off the North Bishops, near Ramsay Island when it got into trouble.
The North Bishops are a series of small islands about three miles from St. David’s Head.
Pembrokeshire is widely considered to possess some of Britain’s most picturesque coastlines.
The county possesses Pembrokeshire Coast National Park, the only national park in the UK established mainly due to the coastline.
St. David’s is a small city with just under 2,000 inhabitants.
City status was first awarded in 16th Century but revoked in 1886.
Queen Elizabeth II requested restoration in 1994.
The Royal National Lifeboat Institution was founded in 1824 and possesses 40,000 volunteers, it serves the UK, Republic of Ireland, Channel Islands and Isle of Man.