It probably was longer at one time and plugged. Look for a SMALL hole somewhere in the nose area, it probably feeds this line. Shouldn't have any water coming out at idle sitting still, if that's what it is. It will have water at speed unless the hole got filled plugged, which is common.
It's a stub hose used for Pitot (Speed) tubing. Since it was never rigged on your engine, it's just dangling there. Good idea to tie wrap it back so its not slapping around in the water.
BTW... we have a dedicated forum for the 4-stroke engines (just a few more down the list).