2012 dema annual report

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The Diving Equipment & Marketing Association's (DEMA's) Annual Report, including information on DEMA's 2012 programs, events and activities. DEMA is the trade association for the recreational scuba diving and snorkeling industry.

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  • 1 | Annual Report 2012 | www.dema.org

    ANNUAL REPORT

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  • 2 | Annual Report 2012 | www.dema.org

    What is DEMA?

    Membership Committee Update

    Marketing Committee Update

    Show Committee Update

    Water, Sports & Travel Festival Committee Update

    Legislative Committee Update

    Market Research Committee Update

    International Growth Committee Update

    Finance Committee Update

    Manufacturers Committee Update

    Table of Contents

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  • 1 | Annual Report 2012 | www.dema.org

    What is DEMA?

    The Diving Equipment and Marketing Association is a non-profit trade association. Monies raised through the Industrys participation in the annual DEMA Trade Show, sponsorships, and through DEMA Memberships, fund all of the activities of the Association. Unlike for-profit organizations which funnel the money earned at shows or events AWAY from the Diving Industry, DEMA funnels everything TO Industry-wide promotions, market and Industry research, operations, disaster assistance, and other Industry efforts, all for the benefit of DEMA Members. Like most trade associations, DEMA has several functions within the recreational Diving Industry. DEMA is involved with promoting recreational scuba diving and snorkeling through PR activities and advertising, delivering educational programming for Members and consumers, lobbying on behalf of the Diving Industry, and other functions. DEMA is a 501(c)( 6) California Corporation.

    Description Worldwide Trade Association for the Recreational Diving and Snorkeling Industries; Includes more than 1,400 Member companies worldwide.

    Mission To Promote sustainable growth in recreational diving and snorkeling while protecting the environment.

    Goals 1. To produce an annual trade event for the Industry that services the needs of its stakeholders and

    produces a successful financial outcome for the Association. 2. To engage in marketing programs which promote the Industry, create new customers, drive

    business into retail stores and resorts and promote diver retention. 3. To monitor potential legislation that could adversely affect the Industry. 4. To engage in marketing research programs which will:

    a. Define the universe of divers

  • 2 | Annual Report 2012 | www.dema.org

    b. Determine the rate of erosion amongst existing divers c. Determine the number of entry-level certifications which take place in the United

    States and Caribbean each year d. Provide retail audit information that is made self-liquidating through annual

    subscriptions. 5. To conserve and protect natural aquatic resources.

    Committees DEMA Committees are an opportunity for volunteers to participate in the activities of the Association and to have an impact on the effectiveness of DEMA. Committees are generally made up of Board Members and may include other volunteers from the Diving Industry. They are advisory to the Board of Directors and DEMA Staff, and bring a wealth of experience to the Association. In 2012 there are a number of standing committees helping to provide input to the Board of Directors and Staff of the Association. Having opinions and insight from the diving community is critical, and the learning curve works both ways; many volunteers learn to understand the inner workings of a large non-profit trade association, including the nuances of providing the best for all five stakeholder groups simultaneously. DEMA's 2012 Committees

    DEMA Show Committee Scott Daley, Chair

    Bonnie Borkin Filippi Werner Kurn Neal Watson

    Janelle Hamm* Jenny Collister

    Finance Committee Tim Webb, Chair

    Tom Leaird

    Marketing Committee Bonnie Borkin Filippi, Chair

    William Cline Scott Daley

    Darcy Kieran Laura Walker*

    International Growth Committee Stephen Ashmore, Chair

    Jenny Collister Ron Kipp*

    Legislative Committee Jeff Nadler, Chair

    Jim Byrem Al Hornsby*

    Dan Orr* Bob Harris*

    Manufacturers Committee Stephen Ashmore, Chair

    Scott Daley

    Membership Committee Tom Leaird, Chair Stephen Ashmore

    Jenny Collister Nicolle Pratt*

    Jeff Nadler

    Water, Sports and Travel Festival Tim Webb, Chair

    William Cline Werner Kurn Eric Michael*

    Bill Cole* Theresa Kaplan*

    Jeff Torode* Scott Daley

    Neal Watson* Carol Hudson*

    Research Committee William Cline, Chair

    Darcy Kieran Scott Daley

    Dr. Stewart Shapiro*

    *Volunteer committee member. Not a current Director on the DEMA Board.

  • 3 | Annual Report 2012 | www.dema.org

    DEMA's Board Committees are generally determined at the first meeting of the year. DEMA Member companies with an interest in serving on future committees should contact Nicole Russell at the DEMA Office ([email protected]) or contact a current member of the DEMA Board of Directors using the contact information found at the following link: http://www.dema.org/displayboard.cfm.

  • 4 | Annual Report 2012 | www.dema.org

  • 5 | Annual Report 2012 | www.dema.org

    Membership Committee Update Tom Leaird, Chair

    Under the direction of the DEMA Membership Committee, DEMA has dramatically changed and increased the number of benefit offerings to Members. Today, being a DEMA Member is more valuable than ever before.

    Membership Meetings During 2012, DEMA conducted a series of 2020 Vision sessions, providing an additional way for DEMA Members to provide input as DEMA creates its future plans. Member input is always valuable, especially with the changing role of associations, and information was used to help the DEMA Board of Directors formulate DEMAs strategic direction. 2012 Brainstorming sessions were held at Beneath the Sea in Secaucus, New Jersey and The Scuba Show in Long Beach, California, and an additional session at DEMA Show. DEMA Members and members of the Diving Industry discussed some of their ideas regarding the Diving Industry and where it is headed in the next 3, 5 and 10 years. The items most often mentioned by Diving Industry Professionals during these brainstorming sessions included:

    Sell the Diving Lifestyle, including dive travel Support & develop professional retailers and their staff Create various benefits for retailers, including health insurance and others Adapt to new media and use social media Make dive travel easier for consumers Put the "edge" back in diving make it more exciting Promote to a younger audience of consumers and bring in younger professionals Create a positive first experience for divers Provide a local purpose to dive after certification (Promote and use Local diving).

  • 6 | Annual Report 2012 | www.dema.org

    The DEMA Board of Directors sees these top-of-mind issues as part of DEMAs continuing mandate and you can see the reflection of this Member-input in new programs and benefits offered through DEMA. The final 2012 session is being held at DEMA Show 2012 in Las Vegas, NV. Additional information will be available to Members following this session.

    Association Communications In an effort to enhance communications with Members and the Diving Industry, DEMA has put for a great deal of effort to diversify its communication methods and enhance those methods already in place. Weekly DEMAIL Newsletter: To provide the Industry with quality information, DEMA incorporated a number of NEW features into the weekly DEMAIL. Such new features include: Legislative News Section: Providing updates on current DEMA legislative efforts and support. Growing the Industry Section: Provides news on the Water, Sports and Travel Festival, DEMA promotional programs and other information relevant to expanding the Diving Industry. Industry News Section: Provides the most current Association and Industry news. DEMA Show News Section: Provides pertinent information on DEMA Show. Member Benefit Spotlight Section: Highlights a valuable Membership benefit each week. DEMA Member Spotlights: Featured on the right-hand side of the email communication, along with a call to action for other current Members to submit their Spotlight. At the end of every month, these Spotlights are recapped in the Member Benefit Spotlight section to give Members another chance at exposure. DEMA Show Countdown: Provides a current countdown to the show and links directly to demashow.com.

  • 7 | Annual Report 2012 | www.dema.org

    Where in the World is Big Wave Dave?: Shows where Dave Reidenbach and the Be A Diver Pool are headed as well as where they have recently been thus helping to keep Members informed of the status of this campaign. Video of the week: Is included as videos are relevant to Industry news/events or as new videos are created. Upcoming Events: Lists upcoming events on the right-hand side with links to more information. News from Around the Web Section: In an effort to pass on insightful tips found from articles on the internet, this section includes links to articles DEMA finds to be potentially useful for various stakeholders/Members in their business. The aim of this section is to easily provide readers with additional food for thought which may not be DEMA-specific but which provides an added benefit for those reading the DEMAIL. The DEMA.org Website: In an effort to make the DEMA website easier to navigate and more engaging, a number of changes and additions have been made. Visual News - Visual banners on the home page are updated weekly and feature the latest DEMA news. Clicking on these images (as prompted by the verbiage within the image) takes the user directly to the news story.

    Member Spotlights This new Member benefit has a unique landing page on the website and Spotlights have been categorized by Membership type. These offer Members great exposure to the rest of the Industry and offer others a more personal/intimate look into the business and Industry professional.

    Member Dashboard - In an effort to make the Member-Only portion of the website more user friendly, a new Member-Only portal has been designed. With better organization and links that are current and in working order, this enhances the Member web experience.

    Social Media Improvements: In an effort to increase social media engagement and use this form of communication to stay in touch with Members, DEMA is implementing a number of efforts to improve social media reach to provide Members with information via social media as a means of staying up-to-date on news, events and stay engaged in their passion.

  • 8 | Annual Report 2012 | www.dema.org

    DEMA recently established a presence on Instagram and Pinterest. The account on Instagram has been created to give the Industry an insiders-view of what is going on at DEMA. Industry professionals who will be joining DEMA at DEMA Show in Las Vegas are encouraged to using Instagram to share their experience with the Industry with the hashtag, #DEMAShow. DEMAs presence on Pinterest has been established to help promote the lifestyle side of the Industry. In an aim to encourage the Industry to share aspects of the diving lifestyle as well as the business side, DEMA has created a number of boards including: Quotes to Live and Di(v)e By, Be A Diver, Diving Industry News, Small Business Tips and more. Industry professionals are encouraged to follow DEMAs Pinterest Boards as content is continuously pinned and shared. In addition to these newly established social media presences, Industry professionals can connect with DEMA and other diving professionals on any of the following sites:

    Facebook: www.facebook.com/demaorg LinkedIn: www.linkedin.com/company/dema-org Google+: www.plus.google.com/110507503905658942180 Twitter: www.twitter.com/DEMAorg Pinterest: www.pinterest.com/demaorg Instagram: Username DEMAOrg Weekly DEMAIL: Subscribe here to receive weekly Industry and Association news DEMA Blog: www.demaorg.blogspot.com

    DEMA Show and consumer programs can also be found online:

    DEMA Show: Facebook: www.facebook.com/DEMAShow Twitter: www.twitter.com/dema_show DEMA Show Blog: www.demashow.blogspot.com Be A Diver: Facebook: www.facebook.com/beadiver Twitter: www.twitter.com/beadiver YouTube: www.youtube.com/beadivercampaign DiveCaching: Facebook: www.facebook.com/divecaching Twitter: www.twitter.com/divecaching

    Additional Membership Benefits: DEMA Membership has many benefits and recently, DEMA has made an effort to introduce a few more benefits with added value, as well as continue to promote the existing benefits. DEMA Member Insurance Program In August 2012, DEMA announced that U.S. based companies of all sizes now have access to health and business insurance choices when they join DEMA. Members located in any of the 50 U.S. states can get a quote and purchase a variety of health insurance

  • 9 | Annual Report 2012 | www.dema.org

    products including a pharmacy benefits program, group employee and individual health insurance, business insurance and have access to workers compensation insurance at DEMA Member-only rates. Educational ADA Webinar Series DEMA scheduled webinar sessions to help DEMA Members understand and implement the new swimming pool requirements recently enacted as part of the Americans with Disabilities Act (ADA). In May, due to comments and suggestions to do so, the United States Department of Justice issued an extension on the compliance date for the ADA Standards for Accessible Design for existing pools and spas provided by state and local governments and by public accommodations. The new deadline is now January 31, 2013. Member Spotlights Members are invited upon joining/renewal to submit their Member Company Spotlight. Different companies are included on this spotlight in the weekly DEMAIL and on the DEMA website. Membership Badge Aimed at increasing Membership pride and visibility. This badge allows Members to show via their online presence that they support the Industry.

  • 10 | Annual Report 2012 | www.dema.org

    Marketing Committee Update Bonnie Borkin-Filippi, Chair

    DIVER RETENTION DiveCaching In response to the need for finding activities which keep certified divers involved, DiveCaching - an underwater version of a well-established land-based game called geocaching, - was created by DEMA in 2011 and promoted to the Industry and divers. What is DiveCaching? The premise is simple; divers hide a treasure or cache underwater, they post the GPS coordinates/location of the hidden cache online, and other divers search for it. When the treasure (a cache) is found, the finder logs their visit to the cache location online, and puts the cache back where they found it. Sometimes the finders enhance the cache. Other times the finders simply put the cache back in the hiding place for the next Dive Cacher to locate. After returning to the surface, the visit to the cache is logged online.

    Everyone who has tried this fun activity has their own favorite reason for participating in the underwater game; some thrive on the fun and adventure of discovery, others enjoy exploring a new dive site or returning to one that they have not visited in a while, still others enjoy practicing their diving skills or using new skills in navigation or search and recovery, or just simply having fun while diving and searching with friends and family.

    For retailers DiveCaching is ideal for keeping customers involved in both local diving and dive travel, and for divers who may have been out of the water for

  • 11 | Annual Report 2012 | www.dema.org

    a while this is a great, fun reason for them to take a refresher scuba course and get back into diving! During 2012 DEMA Garmins GeoCaching Website, OpenCaching.com, Became the New Home for DiveCaching In August of 2012, DEMA began working with Garmins geocaching website, Opencaching.com to promote the real-life environmentally-friendly, in-water game of DiveCaching. Opencaching has made it simple to log and find DiveCaches by adding a new Diving search tag to their cache locating website, www.Opencaching.com. Garmin, the leading, worldwide provider of navigation, communication and information devices and applications, most of which are enabled by GPS technology is the owner of Opencaching.com. Those hiding or finding geocaches underwater are encouraged to rate the caches they find and register their DiveCaches on the diving landing page. Membership on Opencaching is free and anyone with a compatible GPS enabled device can upload, download and log caches. There are also free Opencaching.com mobile apps for iPhone and Android devices. DEMA Supports Dive Centers with DiveCaching In early 2012, DEMA Retail Members received DEMAs PR-In-a-Box. It was created to help retailers grow their business and local diving by utilizing DiveCaching. Enclosed resources in PR-In-a-Box included:

    The PR-In-a-Box DVD, including 7 videos that can help promote DiveCaching The 12 Months of DiveCaching, activity calendar 17 press release templates to support DiveCaching activities The Basics of Media Relations guide including a new section on social media such as

    Facebook and Twitter

    The 12 Months of DiveCaching calendar provides examples of 17 different holiday-related events that retailers can host to promote local diving to your customers. It also includes sample tweets and Facebook posts to help promote DiveCaching activities using social media.

    DEMA has also provided a Retail promotional kit for DEMA Members which includes a promotional video, photos for websites and counter cards, all customized for the DEMA-Member store. When divers hide caches in their local dive lake, quarry or river it will encourage more local diving participation. Divers working or living in resorts can also hide underwater geocaches in these locations making it possible to play the game anywhere in the

    world; there is almost no limit to the type of caches and hiding places. Divers can play all manner of games that promote both diving and DiveCaching once containers are hidden and logged on

  • 12 | Annual Report 2012 | www.dema.org

    Opencaching.com, and stores can develop their own games. DEMA will continue to provide suggestions to member stores. Divers will want to upgrade equipment and get additional training to participate. Consider promoting additional training in buoyancy control, search and compass navigation as a starter, but dont forget underwater photography, drysuit diving and training for low visibility diving. DiveCaching can also help stores acquire new customers. Non-divers can participate in land-based geocaching while their diving family members are looking for caches underwater, encouraging more family-friendly outings and diving-related social events. In addition the geocaching community is very large (more than 5 million worldwide) and there are many who will be also interested in finding caches underwater. The data on the current geocaching audience indicates it is attractive for the diving community, and expanding our reach:

    Gender Percentage College Attendance Percentage Male 55% No college 36%

    Female 45% College 50% Income Percentage Graduate School 14%

    $0 $30K 17% Kids in Household Percentage $30K $60K 33% No kids 0 17 years 65% $60K - $100K 34% Have Kids 0 17 years 35%

    $100k+ 17% No kids 0 3 years 90% Age Percentage Have kids 0 3 years 10%

    3 - 12 3% No kids 3 12 years 75% 13 - 17 13% Have kids 3 12 years 25% 18 - 34 28% No kids 13 17 years 84% 35 - 49 29% Have kids 13 17 years 16%

    50+ 27%

    Environmental Initiatives Environmental initiatives are also possible with DiveCaching. DiveCachers are encouraged to give back to the outdoors and leave the area cleaner than they found it. Clean-up initiatives have been adopted by DiveCachers and geocachers to encourage outdoor civic responsibility. Like beach cleanups and other diving environmental awareness activities, this helps keep our dive areas clean. Divers and DiveCachers are encouraged to carry trash out and even consider taking a mesh dive bag to gather trash off the bottom of the lake or quarry. Doing so sets a great example for others and helps maintain our dive sites for future enjoyment!

    Get Involved with DiveCaching DEMA has created a series of DiveCaching instructional videos to help get your customers involved in this fun activity. See them on the Be A Diver YouTube channel, http://www.youtube.com/BeADiverCampaign.

  • 13 | Annual Report 2012 | www.dema.org

    DiveCaching is a fun activity for all divers and dive centers can get involved to bring their current customers in for more diving fun! For more information on DiveCaching log onto www.DiveCaching.org and www.opencaching.com, or contact DEMA at [email protected]

    DIVER ACQUISITION DEMAs Be A Diver Campaign DEMA launched the Be A Diver campaign in April 2008. The main and continuing goal of the Be A Diver campaign is to provide a means by which DEMA Members can promote the FUN of diving, enabling stores to reach out beyond the important instructional component of recreational diving. The Be A Diver campaign has many different elements and works in a manner that is complementary to other marketing campaigns, but can also stand alone as an inexpensive and complete promotional campaign for DEMA Member stores. In what remains one of the toughest US and world economies in recreational divings short history, DEMA Members have exclusive access to a complete and economical promotion toolbox to use in customer acquisition. In addition to the availability of advertisement materials for DEMA member use, DEMA has also provided a website BeADiver.com which lists every retailer in the U.S. DEMA Members receive preferential listings, and their website URL, phone number and distance from their zip area are provided in alpha order to consumers under the Retail Store Locator. In addition, for a small fee DEMA-Member stores can obtain a preferential store listing based on the potential customers actual location. Non-members receive an alpha listing as well, following the DEMA Members store listing by zip code. For purposes of the Be A Diver listing, DEMA defines retail dive store as DEMA member retailers which meet all of the following criteria: 1. Teach scuba diving 2. Sell scuba diving equipment 3. Provide diving equipment service 4. Have a retail store front 5. Have regular retail business hours 6. Be zoned for business where such business zoning is required 7. Provide air fills 8. Provide DEMA with a copy of the government-issued business license which permits the business to operate.

  • 14 | Annual Report 2012 | www.dema.org

    Whats in the Toolbox? Like any good promotional campaign, to be successful, all of the promotional materials in the Be A Diver campaign must be used together. The components of a good promotional mix include:

    Advertising Radio, television and print ads through various media. Sales Promotions Sales promotions involve the use of media and non-media pressure

    applied to the consumer for a pre-determined, limited period of time, with the objective of stimulating trial or increasing consumer demand, or to improve product visibility and availability.

    Publicity (PR) The classic definition of Publicity or PR states that it is non-paid-for communications of information about the company or product, generally in some media form. While the actual appearance of the product or service in the media may be considered free, most publicity activities do have a cost associated with them. PR firms charge for follow up, stunts cost money to create, and even writing press releases can have a cost. Still, these can be very effective when used in conjunction with other promotional activities and getting the attention of the media can provide a store with far more visibility than not having it. The Be A Diver Pool is a form of publicity.

    Personal Selling Diving is a relationship business, and notwithstanding the sales that take place on the web, getting people to come to a store and purchase equipment or learn to dive is still largely dependent on the face-to-face selling skills employed by dive store staff. All employees should be versed in selling techniques and willing to participate in the sales process. Given that more than 60% of all divers look to their diving instructor for guidance on what they should buy, this is especially important for the instructional staff.

    All of these elements within the Be A Diver campaign are available to DEMA Members FREE OF CHARGE to help capture the attention of the target customer. The Power of a Brand Using the Be A Diver brand helps DEMA Members by tagging onto a brand already known outside of the Diving Industry through television commercials, internet and print advertising. Reaching the potential audience in the DEMA Members area becomes more effective when using a brand already synonymous with the fun of diving. Using the highly-visible brand BeADiver SAVES MONEY AND TIME for DEMA Members.

    THE BE A DIVER POOL TOUR One of DEMAs main goals is to help promote sustained growth in recreational diving. The Association has provided significant amounts of media attention to the Industry over the last several years.

  • 15 | Annual Report 2012 | www.dema.org

    One of the MOST productive tools for the Diving Industry in terms of media exposure has been the Be A Diver Pool, a 16,000 gallon, 4 deep portable swimming pool supervised by Dave Reidenbach and used to grab media attention in good potential diving markets. The Pool is staffed by Dave and by volunteer instructors from DEMA Member retail stores who take advantage of the unique opportunity to display their banners, distribute informative materials and promote their location to a new customer base. Potential consumers are also provided the chance to have unique face-to-face contact with their neighborhood dive professional, and have all of their scuba diving questions immediately answered. The grass-roots interactive opportunity is a valuable resource to participating DEMA member retailers as they continue to get new business through their involvement. The Be A Diver Pool has received tremendous media exposure, and to make it more appealing to companies outside of the Diving Industry, DEMA has been working with an independent auditing company since 2005 to audit all media coverage of promotional projects, including the Pool. This is the only objective way to determine the amount of exposure and the value of the promotions to Members. Through Mid-October 2012, the Pool has generated the following media exposure:

    Media Category Media Impressions* PR Value* Broadcast Exposure 5,522,252 $680,826

    Print and online 40,893,753 $7,181,475 TOTAL 46,416,005 $7,862,301

    With thanks, the following DEMA Member stores were involved with at least one Be A Diver Pool event (and in many cases they were involved with more!). Scuba Schools of America Great Lakes Dive Center Dive Addicts Malibu Divers Pan Aqua Diving, Inc. Ocean Enterprises, Inc. Ocean Adventures Dive Co. Kings County Divers Dive N Trips Deep Blue Scuba & Swim Center Blue Water Divers Donovan's Hobby & Scuba Center The Dive Shop Ski & Scuba Connection LLC Landshark Scuba & Snorkel Center TD Scuba Rex Dive Center Aquatic Adventures Of MI, LLC Frogman Dive Rescue Supply B.A.D. Scuba Inc Capt. Saam's Scuba School Scuba Systems Ltd. Scuba Network Jim's Dive Shop #416 Illinois Institute of Diving Atlantic Edge Dive Center Woods & Water Outdoor Sports Dive Right In Scuba, Inc. Adventure Scuba Company Adventures Under the Sea American Diving Supply Sterling Silver SCUBA Seal Sports Hoboken Dive Center Blue Planet Underwater Adventures Aqua Tec Dive Center Neptune Divers

  • 16 | Annual Report 2012 | www.dema.org

    DEMAs highly visual Be A Diver Pool Tour is seen on television, various forms of print media, and on the web. The Pool Tour has also been successful in generating significant exposure and sales for those

    retailers that use it as part of their promotional mix. In addition to the media exposure of the Pool, individual retailers who support the Pool by staffing the event at stops throughout the year are sent a Certificate in honor of their participation which they can proudly display in their store. Photos from each event are uploaded to the Be a Diver Facebook

    page, as well as the event page on BeADiver.com. These photos are stamped with the BeADiver.com logo to promote interest in diving and encourage visitors to the website to learn more about the sport as event participants share photos with their family and friends. We strongly suggest DEMA Member retailers participate with the Be A Diver Pool whenever possible.

  • 17 | Annual Report 2012 | www.dema.org

    Keeping Divers Active Like most businesses, retaining current customers is the most cost-effective way for the Diving Industry to prosper. Finding ways to keep divers active and participating has been the focus of many different efforts in the professional diving community over the years training organizations have created specialty certifications to train divers in new and fun activities, and to keep divers coming back to the retail store for additional purchasing and interaction. Manufacturers continuously introduce the latest equipment innovations, and resorts and retailers offer promotions, sponsor dive clubs, and conduct fun activities that help induce divers to stay active and involved. Not surprisingly, the more active a diver, the more likely they are to remain a customer. In addition there is also evidence to suggest that when retail stores have longevity in the marketplace, their customers are more likely to stay active, in part due to the ease with which the customer can stay involved with familiar store personnel and the evident comfort level customers have with policies, people and practices that are known to him or her in their home store. Both activity levels and loyalty remain important issues for retaining customers. There are many, often conflicting theories on how to keep divers active. One often-touted concept is that re-certification of divers should be required. Another is that certain levels of certification should be required before the certification is considered life-long. Still another is that equipment purchasing should be required to ensure the customer has a financial commitment that would keep him/her active. Unfortunately, like most mandates or regulations, the use of these requirements would seem more likely to create a barrier to entry, and ultimately reduce participation, rather than increase retention. But these theories are understandably borne of the frustration that accompanies the ever-present question in this Industry of how to keep a certified diver participating and buying. Rather than placing additional obstacles such as re-certification in the path of potential or current customers, it would seem that using a market-driven approach would provide a better long-term retention answer. Underwater photography, which has become very easy and relatively inexpensive in the digital age, is an example of a market-driven specialty that has the potential to keep diving customers involved. In fact ANY specialty area of training and participation (wreck diving, night diving, and other specialty training areas) can contribute to the repertoire of activities that keep a diver involved. DEMAs research indicates that such specialty training and activities do contribute to diver retention and to equipment purchases. In spite of the success of specialty areas of diving in driving participation and equipment sales, there are limitations inherent in specialty activities that may restrict their ability to keep a diver involved. In part this limitation exists because specialties generally require some specific circumstance to accomplish, e.g.; Night diving requires nightfall and specific processes and procedures that keep the diver safe; Underwater photography requires relatively clear water and a subject for the photograph if the diver is to enjoy success. An ideal activity or specialty training area is one in which the diver can participate regardless of circumstances such as low visibility, temperature limitations, equipment requirements, etc. This is especially true in the current economic conditions, where such specialty diving activity could be part of a so-called staycation, conducted as part of regional or local diving event, requiring little in the way of travel for the consumer. Research indicates that local diving, along with participation in travel, additional training and a series of other activities does increase the propensity of a diver to purchase diving equipment. It is obvious that ANY fun diving-related activity should help to keep the customer involved and should help increase the long-term chances of a customer making additional purchases.

  • 18 | Annual Report 2012 | www.dema.org

    Show Committee Update Scott Daley, Chair

    Under the direction of committee chair, Scott Daley, the DEMA Show Committee and DEMA Staff continue to work to improve the Show and increase its value to participating Exhibitors, Attendees, DEMA Members and Industry professionals. Under the recommendation of the Show Committee, the 2012 DEMA Board of Directors voted to finalize contracts for DEMA Show 2013 through 2016 rotating between the Las Vegas Convention Center in Las Vegas, NV and the Orange County Convention Center in Orlando, FL. The Board also tasked the DEMA Staff to pursue additional options for DEMA Show 2017 and beyond in order to request feedback from the Industry on the future location of the Industrys only trade-only event.

    DEMA Show Venue Selection An Overview: Since venue changes usually require an advance window of three to five years, the Show Committee is always looking into new venues to hold DEMA Show. Most recently DEMA has investigated or reviewed proposals from locations such as Reno, New Orleans, San Diego, Denver, and many others. Criteria for selection of a show venue include many details but in general, the selection criteria include:

    Attendee popularity A city or metropolitan area with cultural or entertainment attractions and special event

    venues appealing to the diving professional. There should be a variety of restaurants and other entertainment within a 10 minute walking distance of the host hotel/convention center

    A major airline destination for North American and International travelers. The city should have a substantial number of direct flights coming into the city, and be a hub for at least one major airline

    Current published Industry labor rates for the city must be within 10% of the median current rates for past DEMA cities.

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    There must be an available convention facility that meets DEMAs exhibit and meeting space needs. The convention center must be in a location convenient to major hotels, the international airport and city points of interest. The minimum conventions center size is 350,000 400,000 gross square feet.

    A minimum of 30 meeting rooms in the convention center, capable of holding at least 50 100 people while using classroom style seating.

    Desirable hotels convenient to the convention and exhibit facility for 10,000 12,000 Attendees. Hotel facilities should accommodate a minimum of 1,500 1,800 rooms peak night pick up, with 8,500 total room nights required within DEMAs block. This number of hotel rooms must be within a 5-mile radius/15 minutes travel time (whichever is less) of the convention center.

    Hotel room rates available for the DEMA hotel block under $180.00/night. DEMA Show Committee members and DEMA Staff continue to brainstorm and evaluate DEMA Show features and planning to look for ways to maintain and increase the value of exhibiting and attending DEMA Show. In 2012 and beyond additional benefits and features include/will include:

    Technical Diving New Product Showcase: Technical Diving is a growing niche within the diving community. To highlight its popularity DEMA Show 2012 will feature an exclusive pod for those New Product Showcase entries that are designated as Technical Diving products. This feature will expand for DEMA Show 2013.

    Technical Diving Resource Center: Beginning with DEMA Show 2013 there will be a

    designated Technical Diving Resource Center. This area will offer exhibit and seminar space to Exhibitors offering a Technical Diving service or product.

    Electronic Schedule-at-a-Glance and Twitter Feed: To help keep Attendees stay informed of

    up-to-the-minute details DEMA Show 2012 will feature a new electronic Schedule-at-a-Glance and Twitter Feed. Monitors located in the Welcome Area will highlight daily DEMA-Sponsored educational opportunities, DEMA benefit and Sponsor videos and the @DEMA_Show twitter feed.

    Enhanced Decades of Diving Display: To celebrate the Dive Industrys history and its future

    the DEMA Show Welcome Area will play host to an enhanced Decades of Diving Display including historical facts, footage and displays that celebrate where weve been and where we are headed.

    Redesign of the DEMA Show Exhibit Floor: DEMA Show 2013 will feature a modified exhibit

    hall layout that maximizes Attendee access to DEMA Show Exhibitors, benefits and programs.

    Future DEMA Show Locations Almost every year Orlando and Las Vegas are rated as the top two cities for conventions in the United States. These two cities are diverse in their appeal, and they fit the needs of the Diving Industry very well.

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    Every year about 24% of DEMA Show Attendees are NEW to DEMA SHOW. This means that they are coming into the Industry (or havent been to DEMA Show in at least five years), and are open to new products, new services and new education. When on the East Coast of the US (Orlando) more Attendees come from the East Coast and Europe; When on the West Coast more Attendees come to DEMA Show from the western side of the US and Asia. Site selection and timing of DEMA Show are based on the benefits to Exhibitors and Attendees, including hotel room pricing and proximity to the convention center, labor rates for Exhibitors, and other factors. DEMA Show Attendees and Exhibitors have indicated through surveys and stakeholder meetings that Las Vegas and Orlando were among the best cities for them in which to attend and exhibit at DEMA Show. In order to secure the most desirable convention and hotel contracts in these optimal locations DEMA has negotiated space for DEMA Show through 2016 as follows:

    Year Dates Venue Hall(s) City, State

    2013 November 6-9 Orange County Convention

    Center

    South Hall Orlando, FL

    2014 November 19-22 Las Vegas Convention Center North Halls Las Vegas, NV

    2015 November 4-7 Orange County Convention

    Center

    South Hall Orlando, FL

    2016 November 16-19 Las Vegas Convention Center South Hall Las Vegas, NV

    In addition to these customer-selected venues, surveys and stakeholder meetings clearly indicate that there is a variation in timing preference; one that is dependent on the stakeholder and their business cycle, as well as their particular geographic location. Information gathered from retailers and others that have participated in DEMAs stakeholder meetings, surveys, and other sessions, has indicated that there are two keys to encourage DEMA Show participation: hold the Show at a time when there is as little direct interference as possible with the varied stakeholders businesses, and make sure that the Show is conducive to conducting business. DEMA has continually focused on augmenting the benefits to attending the Show. Initiatives have included specific buyer registration procedures and documentation and the production of solid educational opportunities that provide opportunities for Attendees and Exhibitors to learn new methods to grow their business. These benefits are in addition to the buying and selling opportunities and the chance to see new equipment as well as network on a face-to-face basis, all of which have been and will continue to be the hallmark of DEMA Show. Timing the Show to meet the varied geographic and business cycle needs for our Industry has proved challenging. Conducting the Show in early to mid-October creates conflicts with many retail businesses who are taking customers in the water for certification through the end of October. The former late-

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    January timing of DEMA Show caused just as many conflicts with other types of businesses in different parts of the country and world. Through surveys and face-to-face stakeholder meetings it became clear that the timing for DEMA Show which produced the least amount of business interference for both Exhibitors and Attendees is the period from the end of October through the first several weeks in November (just prior to the US Thanksgiving holiday). DEMA Shows have now been booked as close to this time frame as possible in the venues requested by DEMA Exhibitors and Attendees. DEMA will provide further information regarding the Shows options for 2017 and beyond for Industry review prior to going to contract for additional years.

    DEMA Show Among Top 250 Shows! In 2011 DEMA Show was once again recognized as being one of the top 250 tradeshows in the US by Trade Show News Network. This ranking is due in part because of the support of Exhibitors and Attendees who stay in the DEMA Hotel Block during the Trade Show. The Show Committee thanks all who participate in DEMA Show. With more attendance and participation it possible to help keep Show costs down for everyone!

    Bringing in Young Professionals DEMA recognizes the importance of encouraging early participation in the Industry by younger diving professionals and those who are relatively new to the Diving Industry. Many instructors and professionally-certified diving leaders do not fully engage in the Industry until sometime after first becoming certified at the professional level. Many of these relatively new certified professionals may not see the full extent or professionalism of the Industry until they come to their first DEMA Show. Since individuals certified at the professional level (ie: instructors, divemasters, dive control specialists, and assistant instructors and others with professional credentials) have long been permitted to attend the trade-only event, DEMA developed a pilot DEMA Show-based education program in 2007 to encourage these typically-younger professionals to attend. This program has continued since that time. It is important to recognize that admitting new professionals does NOT change the credential requirements for admission to DEMA Show. The Immersion Program consists of a one-day exhibits-only pass to DEMA Show, offered at a lower registration price and good only for the Saturday of DEMA Show.

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    Water, Sports & Travel Festival Committee Update Tim Webb, Chair

    April 26-28, 2013 | Ft. Lauderdale Convention Center, 1950 Eisenhower Blvd., Ft. Lauderdale, FL 33316

    www.WSTFest.com | Facebook.com/wstfest | Twitter.com/WSTFest

    EVENT OVERVIEW The 1st annual Water, Sports & Travel Festival, taking place April 26-28, 2013 in Ft. Lauderdale, Florida, encompasses a series of city-wide events for those people interested in an active lifestyle and water-based sports. By bringing together many water sports disciplines whether on the water, in the water or over the water the Festival will encourage future growth and interest in these areas while also exposing customers to recreational diving and snorkeling.

    PURPOSE OF THE FESTIVAL DEMA is producing the Festival in an effort to bring in new customers from outside the Diving Industry to grow the sport. While producing a traditional dive consumer show generally involves reaching mostly current divers (90% to 95% of those attending most dive consumer shows are already divers), DEMA can help grow the Industry by reaching outside of the sport and tapping into customers with a similar Lifestyle Activities profile. This is cross-marketing, and is a time tested and proven method of reaching more customers and the basis for the marketing strategy of the Festival. Recent research conducted by DEMA has revealed that the customer attracted to diving is also attracted to many other sports and hobbies. Awareness of these common interests provides the

    Diving Industry with the ability to promote directly to individuals who are most likely to become part of the diving community. The Festival will incorporate these cross-over activities and sports which in turn should assist the diving community in reaching a new (and returning) audience of divers. The Festival will be strongly influenced by its roots in the Diving Industry and will attract divers and non-divers, as well as those who participate in other water-based sports. Water-based sports and activities include diving, snorkeling, swimming, underwater sports

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    and photography, skiing, boating, body boarding, canoeing, rafting, rowing, kayaking, fishing, jet skiing, windsurfing, wakeboarding, hydrofoiling, skimboarding, flowboarding, kitesurfing, parasailing, stand up paddle boarding (SUP), surfing and boating toys. Inviting Exhibitors and the trade and consumer associations from these complementary industries can generate Attendee traffic and provide ample opportunity for the diving community to reach new potential customers. These activities are also prime candidates for raising sponsorship dollars which will help DEMA promote recreational diving. As a non-profit trade Association, funds raised at the Festival (as well as other DEMA activities) are put back into the Diving Industry to promote growth, protect the aquatic environment and keep access to dive sites open.

    WHO SHOULD ATTEND? An extensive marketing campaign was started in 2012 to reach a local, regional, national and international audience of consumers and professionals, with most Attendees forecast to come from Florida and the Southeast United States. Events will attract a broad cross-section of Attendees with an active lifestyle and an interest in water-based activities. The Festival will be strongly influenced by its roots in the recreational Diving Industry and will attract divers and non-divers, as well as those who participate in other water-based sports and high-interest activities.

    WHO SHOULD EXHIBIT? Suppliers of water sports equipment such as diving and snorkeling gear (life support equipment may be displayed but not sold on premises), wakeskates and wakesurfers, wakeboards and boots, kneeboards, jet skis, boards and boarding gear, skiing gear, apparel and other action sports equipment including skateboards, dive tour operators, resorts and hotels, national tourism organizations, adventure and eco-tour operators, dive stores & retailers, education and training providers, certification agencies, freediving equipment, spearfishing, boating equipment and other appropriate Exhibitors.

    WILL RETAIL SALES BE ALLOWED? Retail sales will be allowed for all non-dive and dive products with the exception of life support/safety equipment for diving. Sales, distribution and taking of orders for life support/safety dive equipment is prohibited. Dive Exhibitors at the Festival may display life support equipment and sell all other products and services. Those selling diving-related and other recreational products must provide proof of product liability insurance to participate in selling. Exhibitors selling services such as travel and education must provide proof of general liability insurance.

    For the purpose of this Festival, life support will include:

    Scuba diving and surface-supplied regulators or any part thereof. Any device which delivers compressed breathing gas to a submerged diver. Closed or open circuit rebreather devices or any part thereof. Scuba or dive related buoyancy control devices (BC) or any part thereof.

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    Electronic or mechanical diving computers or any part thereof, excluding so-called manual dive tables, manually-operated dive calculators, dive timers and free/breath-hold diving computers.

    WHAT FEATURES WILL THE FESTIVAL INCLUDE? An educational program is being created covering all water sports activities and will include seminars and training for consumer Attendees, conference sessions for professionals, and eco and conservation sessions for everyone. Many additional special events are being created with the help of sports professionals including contests, in-water product demos; DiveCaching activities, live music, a lion fish cook-off, sports demonstrations, field trips to the Caribbean and around Fort Lauderdale, silent auctions, and much more yet to be announced.

    WHY FORT LAUDERDALE? Greater Fort Lauderdale is not only home to 23 miles of golden sand beaches but also to an array of dive sites and marine life. From Deerfield Beach in the north to Hallandale Beach in the south, a unique natural three-tiered reef system begins in 20 feet of water just 100 yards from shore at its closest point. And more than 75 artificial reefs have been placed on the ocean's floor over the past 20 years as magnets for fish and reef life. Beginning in depths of 30 feet, there are more than 100 dive sites with permanent mooring buoys to reduce anchor damage. Fort Lauderdale was named Top Ten World's Best Wreck Diving, Marine Life, and Value Dive Destination by the readers of Scuba Diving magazine. [From THE GREATER FORT LAUDERDALE CONVENTION & VISITORS BUREAU] In addition to its desirable locale for recreational diving, Ft. Lauderdale Florida is a convenient and beneficial venue for a variety of reasons specific to the Festival:

    The local population fits the target market in terms of demographics, household income and affinity for an active lifestyle which benefits recreational diving and other water sports. In addition there is a considerable population of younger residents which are attracted to the cross-over sports being promoted at the event.

    The visitor population during the Festival will be substantial and includes domestic and international customers. April is one of the busiest months for hotels in Fort Lauderdale, helping secure an additional tier of Festival Attendees.

    Opportunities for non-divers to actually try diving through the Be A Diver pool in conjunction with local retailers and training organizations. This is an opportunity to promote diving to an affluent, water-oriented population, as well as to attract a younger audience, especially for local retailers.

    Opportunities to reach current divers. Each year, Florida consistently has the second largest population of newly certified divers, many of whom are interested in education, entertainment, buying products and services and purchasing dive travel.

    Ft. Lauderdale is a gateway to many dive destinations throughout the Caribbean and elsewhere.

    Ft. Lauderdale in spring offers a geographical location and date which does not conflict with large consumer events in the Water, Sports, and Travel industries.

    Ft. Lauderdale provides a venue which can attract and expose other sports enthusiasts to diving, benefitting training organizations, travel operators, diving and vacation destinations,

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    The Association of Wind & Water Sports Industries (AWSI) is proud to support the first

    annual Water, Sports, and Travel Festival. We feel that this is perfectly in

    alignment with supporting our mission of "promoting the advancement and

    sustainability of the wind and water sports industry" by introducing a larger audience to the sports and lifestyle we represent and the

    accessibility of learning these while on vacation.

    local retailers, and manufacturers. There are more than 5 million consumers in the immediate vicinity to Ft. Lauderdale.

    Manufacturers and local retail stores can easily conduct demonstrations of new equipment during the event as the water is warm and there are actual dive locations and many stores nearby.

    With a large certified diver population in South Florida, divers who have been out of diving for some period of time have an opportunity to easily come back into the sport.

    Ft. Lauderdale has contacted DEMA with a solid offer of support to market, advertise and promote the event to groups and markets not easily accessible to the dive community.

    WHAT MEDIA OUTREACH WILL TAKE PLACE? Media outreach will include both general and targeted marketing as well as PR coverage for all the special events. General marketing will include advertising in all types of media including internet-based, print in newspapers and magazines, TV, radio, social media and direct mail. Targeted marketing will include advertising in specific water sports-related publications, water sports-related social media and blogs and direct mail.

    PARTNERSHIP ORGANIZATIONS (as of 11/7/12) Greater Fort Lauderdale Convention &

    Visitors Bureau American Canoe Association South Florida Wakeboard Association Association of Wind & Water Sports

    Industries (AWSI) Handicapped Scuba Association KiteWorld magazine South Florida Underwater Photography

    Society Caribbean Hotel & Tourism Association (CHTA)

    X-Ray Magazine

    EXHIBIT SPACE Those interested in information on booth pricing, selection and sponsorship opportunities are encouraged to contact the Festivals event management team, MSE Management: E-mail: [email protected] Toll Free: (800) 322-9332 Phone: (203) 622-7081 Booth space is available at: $1395 per 100 square feet for DEMA Members $1995 per 100 square feet for non-Members

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    Legislative Committee Update Jeff Nadler, Chair

    Each year DEMA establishes a Legislative Committee which includes DEMA Board Members, DEMA Member volunteers and DEMA Staff. The Committee works directly with the DEMA Office to review issues and bills, and provides input to government officials and organizations via the DEMA Staff. The Legislative Committee works for the betterment of the recreational Diving Industry, striving to strike a balance between protecting the underwater environment and maintaining access to dive sites for all. Duties of the Committee include monitoring legislation and government administrative activities which may adversely impact diving businesses or dive site access, and encouraging activities which protect the underwater environment. Legislative advocacy can require substantial amounts of time, but can be well worth the effort. Advocacy provided through the DEMA Legislative Committee provides DEMA Members with a direct voice in the legislative process. When DEMA has the opportunity to act or comment on potential legislation which may have a far-reaching impact, DEMA Members have the added bonus of receiving notifications regarding those changes to federal, state or local laws. One of the goals of this effort is to provide such notification in time for Members to also participate in actions affecting these issues.

    Activities of the DEMA Legislative Committee in 2012 Dive-In at the Capitol DEMA hosted a Dive Day in Tallahassee, Florida in January of 2012. The purpose was to provide operators with the opportunity to meet legislators and their guests/families and to emphasize the importance of recreational diving to the Florida economy. Legislators received economic information about diving in Florida and its impact on the Florida economy and there was considerable press coverage of diving as a result. Companies involved with the DEMA-organized event included:

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    Dive Bar Force-E Narcosis Scuba

    Pura Vida Divers Scuba 7 Scuba Board

    Scuba Ozzy Scuba Radio Wakulla Diving

    National Ocean Policy (NOP) As a result of public and written commentary on the NOP and connections with DEMA Board Members, Tom Ingram represented the Recreational Diving Industry on the White Houses National Ocean Council. In February, Ingram participated on behalf of the Diving Industry in a conference on The National Ocean Policy and Recreational Users, with the National Ocean Council Acting Director and Representatives from the U.S. Department of the Interior, the U.S. Coast Guard, and the National Oceanic and Atmospheric Administration. Some of the Associations and Organizations with which the Diving Industry met include:

    American Sport Fishing Association Boating Industry Coastal Conservation Groups around

    the US Floating Guides Association

    Hawaii Fisheries National Marine Manufacturers

    Association Senator Marco Rubios Office (R-FL)

    This policy was created by a Presidential Executive order in 2010 (without Congress) and involves 27 different federal agencies (http://www.whitehouse.gov/the-press-office/executive-order-stewardship-ocean-our-coasts-and-great-lakes). The federally-mandated policy will have a long-term impact on access to diving areas as well as on fishing and energy uses. DEMA has explained the need for administrative and government officials to take a balanced approach which protects aquatic resources while preventing unneeded restrictions on non-consumptive users. As recreational diving is not inherently a consumptive or extractive activity, DEMA has reiterated that diving use should not be restricted or considered as part of extractive user groups. DEMA continues to monitor and comment on these issues and has requested and obtained a seat at the table to continue providing input. This National Ocean Policy will most certainly have additional impact and some restrictions on aquatic resource usage in the future. Americans with Disabilities Act: Changes Impacting the Diving Industry In March 2012, DEMA submitted comments in favor of delaying the deadline date for certain requirements of Titles II and III of the Americans with Disabilities Act. The extension of the date for compliance with the new requirements, proposed by the Department of Justice related to provision of accessible entry and exit for existing swimming pools and spas outlined in the 2012 ADA Standards for Accessible Design. With the understanding that proper entry and exit equipment is necessary for training facilities used to teach diving to physically challenged individuals, DEMA and the Diving Industry strongly supported the proposed 180-day extension of the implementation of the new ADA requirements suggested in a

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    notice of Proposed Rulemaking from the Department of Justice. The extension, which was enacted and extended to January 31z 2013, provided pool owners and operators additional time to evaluate their accessibility options and implement the necessary changes to comply with the required standards. In public comments, DEMA also expressed concern that dive store owners and pool operators still had many questions regarding these requirements. The significant confusion regarding the proper retrofitting of existing pool facilities with lifts and ramps included confusion and misinformation regarding private pools used for training by the dive center versus access requirements for public facilities, requirements for clearance and access routes to lifts in facilities with minimal pool deck space, requirements for ramp and handrail access for pools with minimal deck space, permanently installed lifts versus temporary lifts, above ground temporary pool access requirements, and others. The enacted rule, which will go into effect on January 31, 2013, requires pools used by businesses to have lift capability. To help educate pool owners and operators concerning the requirements imposed by the Department of Justices 2010 regulations, the Civil Rights Division published a technical assistance document (TA Document) entitled ADA 2010 Revised Requirements: Accessible PoolsMeans of Entry and Exit on January 31, 2012. Available at http://www.ada.gov/pools_2010.htm, this document provides an overview of the new accessibility requirements for pools and discusses the application of the requirements. In response to the need for greater understanding by Members, DEMA also developed and promoted webinars to help Members understand pool compliance requirements. Seminars are also scheduled for Saturday, November 17th in affiliation with DEMA Show 2012 to further educate Diving Industry businesses. Passage of Legislation in Florida to Resolve Dive Charter Boat Fishing License Issue Following months of close collaboration with the Florida Fish and Wildlife Conservation Commission (FWC), DEMA succeeded in placing language regarding the licensure of dive charter vessels in Florida House Bill 7025. This Bill amends a previous law which would have forced dive charter operators to purchase a fishing and lobster license when they advertised for, or knowingly permitted scuba divers to take fish or lobster from their vessels while diving. DEMA became involved in this issue in 2011 because of potential confusion generated just weeks prior to the opening of the two-day Florida lobster mini-season. The FWC threatened enforcement of laws which would have required dive charter vessels to have fishing licenses when divers were aboard taking lobsters or spearing fish, or when the vessel operators advertised to divers to take fish or lobster. Prior to this new enforcement effort by the FWC, individual divers had been required to purchase these licenses, however, the dive charter vessel operators were not required to have a license. This change in enforcement could have resulted in BOTH divers and dive vessel operators being forced to purchase a license, doubling the cost. DEMA worked with the FWC to hold off enforcement of the law until both sides could reach a resolution during the current legislative session. The language in House Bill 7025 makes it clear that there are now two options for individual divers and dive charter vessel operators:

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    Option 1: Authorizes dive charter vessel operators to purchase a vessel license. In that case, individual divers planning to take or actually take fish or lobster do not need to obtain a separate license.

    Option 2: Divers may obtain their own fishing license, in which case the dive charter vessel operator would not be required to have a vessel-based license when advertising for or knowingly permitting divers to hunt fish or lobster from the vessel.

    The bill was signed by Florida Governor Rick Scott on April 6 and went into effect on July 1, 2012. The actual Bill may be viewed here: http://flsenate.gov/Session/Bill/2012/7025. Lionfish and Injuries to Divers DEMA and the Divers Alert Network (DAN) collaborated on a public service announcement (PSA) aimed at providing effective basic first aid instructions for Lionfish-related injuries. The PSA was produced in response to the increasing number of reported injuries which have been attributed to the species alarming population increase and invasion into nonnative waters, and the culling activity in which many divers have engaged. The 30-second PSA provided divers with fundamental knowledge on what to do to immediately and effectively treat an injury sustained due to a Lionfish encounter. The PSA is available online on Be A Divers YouTube channel, http://www.youtube.com/watch?v=7Q9zDnidc_o and viewers are encouraged to share the PSA with others. The PSA first aired on Cayman Islands television in May. By creating this campaign, DEMA and DAN hope to empower divers with the knowledge necessary to quickly and properly handle an encounter with the venomous Lionfish. You can also find more detailed information about the Lionfish invasion and how you can help at www.reef.org/lionfish and www.dan.org. Shark Fin Ban In partnership with many Diving Industry partners, DEMA supports the banning of shark fins in the market place. In May, DEMA joined a variety of organizations in supporting the ban on the sale of shark fins in New Jersey. Organizations included:

    American Littoral Society Born Free USA Center for Oceanic Awareness,

    Research and Education (COARE) Defenders of Wildlife Humane Society of the United States Jenkinsons Aquarium Pt. Pleasant

    Beach, NJ

    Jersey Shore Chapter of the Surfrider Foundation

    Mission Blue: Sylvia Earle Alliance National Geographic Society Natural Resources Defense Council New Jersey Historical Divers

    Association, Inc. New Jersey Maritime Museum

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    Ocean Futures Society Ocean Geographic Society

    Oceana Shark Research Institute

    Specifically, DEMA was able to provide job and economic data supporting the ban on shark finning, citing the loss of diving-related jobs and the economic impact on the local area due to a reduction in the shark population if finning were allowed to continue. The support and the partnership with these organizations helped to secure the needed legislation. Support of the Florida Keys National Marine Sanctuary DEMA submitted comments to the Florida Keys National Marine Sanctuary (FKNMS) Advisory Council on issues related to the Sanctuarys boundaries, marine zones and associated regulations. Sanctuary officials solicited comments from the public as part of the FKNMSs periodic review process, with the goal of using the input to determine the best direction within the sanctuary to protect and conserve the living marine resources and submerged cultural resources of the Florida Keys. The comments were submitted by Tom Ingram, Executive Director of DEMA, on behalf of the Association and will be used to guide and assess the marine zone and regulations, and shape Florida Keys marine conservation for the future. DEMA and the Diving Industry strongly support the FKNMS in its current configuration. The Diving Industry depends on sustainable interaction with the marine environment as well as with certain submerged cultural resources for its very existence, and is aware of the need for long term sustainability within the National Marine Sanctuary System. DEMAs comments emphasized:

    Maintaining sustainable use of the resource while protecting the environment and its historical and cultural importance.

    The interest of snorkeling and scuba diving participants in protecting and respectfully using the marine environment while keeping it clean and healthy.

    That individuals participating in recreational scuba diving and snorkeling contribute to marine-related tourism in Florida.

    The interest of snorkelers and scuba divers in protecting and observing historical and cultural artifacts.

    DEMAs continuing interest in providing input to the Advisory Groups on behalf of Recreational diving.

    As always, DEMA is willing and excited to work with all state and federal authorities to ensure that FKNMS remains one of the nations principal conservation sites. For more information on the marine zoning and regulatory review (floridakeys.noaa.gov/review/welcome.html), read: Goals and Objectives of Marine Zoning: http://floridakeys.noaa.gov/review/goals.html Principles for Marine Zoning Review: http://floridakeys.noaa.gov/review/process.html Official comments submitted by DEMA: http://dema.org/associations/1017/files/FKNMS-OfficialCommentsFromDEMA.pdf Health Care Reform Member Advisory

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    With the late June final ruling by the US Supreme Court on the constitutionality of the Patient Protection and Affordable Care Act (PPACA), DEMA issued a Member Advisory outlining some of the more critical, immediate and near-future changes to the law that the now valid individual mandate would bring to businesses and states. These changes included:

    New W-2 Reporting Requirement effective January 1, 2012. New Employer Mandates requiring companies to offer health insurance to their employees

    when size thresholds of 50 employees are reached effective January 1, 2014. New American Health Benefit Exchanges required by each state effective January 1, 2014 and

    each company must notify employees of these exchanges by January 1, 2013. New and Increased Taxes on Private Company Members effective January 1, 2013. New Fees and Taxes Affecting Current Health Insurance Premiums.

    The Member Advisory can be found in its entirety here: http://www.dema.org/displaycommon.cfm?an=1&subarticlenbr=655 Request for Withdrawal of Coast Guard Advisory on Recreational Diving In late July, DEMA submitted a letter to the United States Coast Guard, U.S. Department of Homeland Security on the Coast Guards Marine Safety Advisory 01- 12 requesting that the Coast Guard withdraw the Advisory due to its inaccurate and misleading premise which led to confusion for dive vessel operators. Some of the recommendations stated in the Advisory conflict with long-established and existing Industry practices and create confusion similar to that created by federal regulatory OSHA efforts which conflict with Coast Guard regulations relating to commercial diving. The Advisory was addressed to Passenger Vessel Operators, Owners and Crewmembers providing commercial transport and support services to recreational divers, and reminded them of safety responsibilities to themselves and their passengers. It also provided recommendations and lessons learned from recreational diving casualty investigations, and promoted awareness of Industry best practices. As an alternative to this Advisory, DEMA requested that the Coast Guard, in future communications, direct passenger vessels supporting recreational diving activities to follow the protocols outlined by the recreational Diving Industry, the acknowledged experts in this field, which have proven extremely effective in providing a high level of safety for divers. DEMA reiterated its strong interest in conferencing with Coast Guard representatives about the conclusions reached, and how the Diving Industry and the Coast Guard can work together to serve our common goal of diver safety. The Advisory can be found here: http://www.dema.org/associations/1017/files/ADVISORY-REC-DIVING0112-2.pdf The letter from DEMA can be found here: http://www.dema.org/associations/1017/files/DEMALettertoCoastGuardRegardingAdvisory01-12.pdf

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    Access to Edward Ball Wakulla Springs State Park, Florida DEMA worked with the Florida Environmental Protection Agency and the Florida State Park System to introduce legislation which would open Wakulla Springs to divers who are properly equipped and trained. The final decision by the Florida EPA was to retain the protected status of Wakulla Springs, preventing access to the spring and caves for recreational diving. The spring has limited and restricted access for scientific diving. Promoting Diver Safety During Lobster Mini-Season in Florida For the last three years, DEMA has circulated a video public service announcement to television stations in Florida and surrounding states and online to remind divers to tune their equipment and take a dive refresher course prior to the opening of Floridas Lobster mini-season. The PSA can be found here: http://www.youtube.com/watch?v=FyG6LEdBWt4&list=PL4551A0096D66FAEC&index=3&feature=plpp_video Thanks to the diligent efforts of all members of the recreational Diving Industry, in 2012, there were ZERO fatalities during the Florida Lobster mini-season. Dive Flag Public Service Announcement At the beginning of the 2012 traditional dive and boating season, DEMA rolled out a public service announcement video reminding both divers to use and stay close to a diver down flag and boaters to stay away from dive flags. The PSA was distributed to cable television stations in three states (Florida, Texas and California) and also ran through DEMAs social media channels. This is the second year DEMA

    has provided this PSA to the media. Sponsored by Divers Alert Network (DAN) and in partnership with the National Safe Boating Council, the PSA will be redistributed annually to help keep boaters and divers aware of the need for dive flags. The PSA can be viewed here: http://www.youtube.com/watch?v=-uIUF9Iccyk.

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    Market Research Committee Update William Cline, Chair

    DEMAs role includes providing Members with data that helps their businesses. Providing market and Industry research is critical for all trade associations. As a Marketing Association, DEMA has taken this role as a central part of its goals. At the heart of marketing is the understanding of the customer, how we communicate with them and what message will generate the greatest response in a cost-effective manner. Most everyone in the Diving Industry has some idea of their own customers; retailers see who purchases the equipment and training they sell; manufacturers have an understanding of who purchases their products through warranty registrations and information from their retail dealers, training organizations can easily check their own certification information for demographic details, places where their customers live and more. The question for the Industry and for DEMA is how to pull all this information together to enable additional sales, more traffic, greater retention and more fun. Having marketing data from all sources in the Diving Industry, including data from actual divers is critical. DEMA participates in several ongoing research projects each year, but also has additional customized data available for DEMA Members to use. All members of the diving community can benefit from this type of data.

    Certification Census Thanks to the three participating certification organizations data has been made readily available regarding the number of new divers certified each year since 2003. The Census includes data on Open Water-level diver certifications only, as defined by the Recreational Scuba Training Council (RSTC). This statistic is a measure of growth for the Industry at large, and is indicative of the health of the sport. The cooperative effort between all of the currently reporting certification agencies includes reporting their certification information to an independent, third party auditing firm. Although not all training organizations currently participate with this program, all are invited to participate.

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    Open Water certification numbers are reported to DEMA in total only after the third party auditing firm does a thorough review of the data, removes any duplication that appear across agencies, and receives a letter of verification from the reporting training organization. This process is designed to make the Census totally anonymous with regard to training organizations and to produce an accurate accounting of the totals within the US. Neither the DEMA Office nor the DEMA Board receives access to individual training organization totals, only the aggregate total. Up-to-date Certification Census data is available at www.dema.org and important state-by-state data is available to DEMA Members.

    Manufacturing Sales Index (MSI) For more than 20 years DEMA has gathered and reported data on sales at the manufacturing level. The data is reported by those manufacturers that voluntarily participate in the program and is gathered by a third party administrator on a monthly and quarterly basis. The individual manufacturers information is kept confidential and only the aggregate is reported back to participating companies. Data from the Index used by manufacturers to compare their sales with those in the Industry, to help understand market share information, and to help determine trends.

    Understanding the Diving Consumer For a variety of marketing programs the place to begin is understanding the current customer and their buying habits. DEMA has conducted studies at a national level in the US, but diving is a diverse activity and each geographic region is different in terms of diving season, and equipment and training needs. DEMA Members have at their disposal the ability to analyze their own local customers using a very sophisticated marketing information system which provides data regarding the Members actual customer lifestyle including:

    Income Education Group Quarters Dwelling Type Geographic Mobility Place of Work and Commuting Mode of Travel Employment Industrial Classification Occupation Age Race, Hispanic Origin, and Ethnicity Immigration Home Language

    Household Structure & Family Status Creation of Media Messages and

    Images Most Likely to Trigger a Response

    Optimization of Advertising Costs Through Cost-Effective Media Placement

    Identification of High-Potential Untapped Market Locations and Sites

    Analysis of Penetration and Sales Performance In Any Neighborhood

    Comparison of Locations for Sales Performance Benchmarks and Objective

    To supplement the effort, DEMA also provides assistance and information to help retail stores and others make the most of their advertising dollars using the Be A Diver materials. Several How To Guides are available to any interested diving professional, including a Regional Cable Television Advertising Buying Guide, Direct Mail Guide, and Be A Diver Promotional Guide (which includes a catalog of available advertising materials).

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    Geo-demographics is a disciplined analysis that combines geography and demography and is used to develop customer profiles. It is important to note that geography plays a role in the demographics of an area. For example, sometimes the place attracts certain types of people, as when some ethnic neighborhoods attract recent immigrants with similar ancestries. Sometimes people transform the place. These studies are useful because they provide verifiable data which can be duplicated by anyone properly using the same sophisticated marketing information system DEMA uses. That makes the data useful when DEMA or any member of the diving community uses this system to seek sponsorship funding outside of the Diving Industry. Other data collected internally from within the Industry, even though it may be accurate, is not generally verifiable in the same manner, in some cases making it less useful for reaching outside the Industry to develop partnerships. The data and customer profile are useful within the Industry as well. Geo-demographic data allows the marketer to:

    Develop clear and detailed understandings of customers and markets Select effective targets based on business need Create media messages and images most likely to trigger a response Optimize advertising costs through cost-effective media placement Identify high-potential untapped market locations and sites Analyze penetration and sales performance in any neighborhood Compare locations for sales performance benchmarks and objectives

    The two primary advantages to using this type of program are:

    It provides an understanding of where the customers are generally located, making it possible to focus television, local print, internet and radio marketing efforts.

    It makes it possible to purchase the addresses of these potential customers using zip codes and the household data to determine where to find the greatest concentrations of potential customers.

    It is worth noting that companies such as Master Card, Sprint, Verizon, Rexall Drugs and many others use this same computer platform for their marketing efforts. In addition, this lifestyle marketing information system helps retailers locate customers, and map the area around the retail store to determine the best potential for reaching additional customers. The data from these individual store analyses can save DEMA Members money by avoiding non-productive target neighborhoods, and can even be used to plan the best areas for cable TV and radio ad coverage, as well as providing data for the sale or purchase of the store.

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    EXAMPLE NEIGHBORHOOD DATA

    Pitney Bowes MapInfo PSYTE US Advantage Profile Report 60 mile Ring Atlanta, GA (DMA-9)

    September, 2011

    PSYTE Code Cluster Name HH Count in region

    % of total HH in region

    Base Count of Cluster in US

    % of Total US HH

    Regional Penetration of Total US Cluster HH

    Index

    Low Density Suburban 1

    LDS1_03 Nouveau Manors 78,853 3.86% 958,236 0.83% 8.23% 463.81

    LDS1_09 Suburban Wave 184,387 9.03% 2,337,607 2.03% 7.89% 444.59

    LDS1_22 Kids, Dogs, Vans 174,958 8.57% 2,525,670 2.19% 6.93% 390.44

    LDS1_06 Balancing Acts 68,650 3.36% 1,698,427 1.48% 4.04% 227.82

    LDS1_02 Executive Domain 92,875 4.55% 2,471,005 2.15% 3.76% 211.85

    LDS1_13 Sierra Snuggle 50,516 2.47% 2,775,999 2.41% 1.82% 102.57

    LDS1_07 Equestrian Heights 16,660 0.82% 1,368,272 1.19% 1.22% 68.63

    LDS1_01 Tuxedo Trails 7,445 0.36% 862,273 0.75% 0.86% 48.67

    LDS1_20 Empty Nest East 5,331 0.26% 1,540,993 1.34% 0.35% 19.50

    LDS1_16 Frontier Towns 0 0.00% 857,073 0.74% 0.00% 0.00

    Total Low Density Suburban 1 679,675 33.28% 17,395,555 15.11% 3.91% 220.22

    * Shaded areas are DEMA Target Clusters

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    Fast Facts: Recreational Scuba Diving and Snorkeling There are between 2.7 to 3.5 million active scuba divers in the US with around 6 million active scuba

    divers worldwide There are about 11 million snorkelers in the US and about 20 million snorkelers worldwide Profile of the most active divers in the US

    the divers who spend the most on equipment, certifications and training combined (n=308,000 divers; Published 2007, affirmed, 2009):

    o Age Between 38 & 53 years old Mean: 45 Median: 46

    o 76% are male o Household Income 56% make

    between $75,000 and $100,000 o Occupation 80% are White-

    Collar/ Professional/ Technical/ Management

    o Home ownership 93% own their own home

    o Mortgage amount Median of $148,000

    o Marital Status 71% married o Presence and age of children 17% have kids under 18

    Largest Single Group of Customers Who Bought Diving Equipment (n= 101,000 equipment customers; Published 2009): Income Equipment Purchaser Compared to US Overall Median Household Income: $124,295 $53,935 Mean Household Income: $155,901 $65,258 Per Capita Income $53,762 $24,752 Age of Householder Equipment Purchaser US

    35 54 57.6% 43.0% 55 - 64 17.6% 13.3%

    Marital Status Equipment Purchaser US Males, Never Married 19.4% 30.0% Males, Currently Married 75.4% 58.9% Males, Divorced 3.7% 8.6% Females, Never Married 16.1% 23.9% Females, Currently Married 72.7% 54.9% Females, Divorced 5.5% 10.8% Household Composition Equipment Purchaser US Married Couple and Family 78.9% 51.7% Married Couple-Children under 18 40.9% 23.5% Married Couple no child under 18 38.1% 28.1% Average Household Size 2.91 2.66 Housing Equipment Purchaser US Owner Occupied 94.1% 66.5% Owner Occupied, Single Detached 89.0% 53.6% Median year structure built 1974 1966 Median Home Value $359,016 $161,077

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    Educational Attainment Equipment Purchaser US High School Graduate Only 11.7% 28.6% Associate or Bachelors Degree 41.0% 21.9% Masters, Professional or Doctorate 27.3% 8.9% Occupation Equipment Purchaser US White Collar 86.2% 60.5% Blue Collar 13.8% 39.5% Open Water Certification Statistics: Top Diving States in the US 2005 to 2011 State by State Tally 2005-2011 2005 2006 2007 2008 2009 2010 2011 2005-2011 % By State

    CALIFORNIA 22,572 22,329 21,429 20,464 18,270 18,552 18,765 142,381 13.24%

    FLORIDA 13,688 15,055 14,493 13,933 13,377 13,661 15,226 99,433 9.25%

    TEXAS 10,307 11,058 11,125 11,429 10,741 10,966 11,930 77,556 7.21%

    VIRGINIA/MARYLAND/D.C 7,783 7,597 7,613 7,367 7,081 7,895 7,789 53,125 4.94%

    NEW YORK 7,480 7,481 7,678 7,691 7,105 7,793 7,314 52,542 4.89%

    COLORADO 5,708 5,453 5,607 5,287 4,640 4,723 5,052 36,470 3.39%

    Top Activities in which Active Divers Participate (Including Snorkeling and Scuba): Profile TGI*

    Participate in Skiing Downhill 162.71

    Participate in Snorkeling/Skin Diving 159.13

    Participate in Tennis 158.48

    Participate in Golf 155.69

    Participate in Scuba Diving 152.21

    Participate in Bicycling-Mountain 145.70

    Participate in Bicycling-Road 141.34

    Participate in Racquetball 139.13

    Participate in Sailing 138.66

    Participate in Jogging/Running 137.49

    Participate in Weight Lifting 137.24

    Participate in Yoga 137.03

    Participate in Water Skiing 135.40

    Participate in Backpacking/Hiking 134.67

    *TGI = Target Group Index where 100.00 is average participation nationwide

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    Entry-Level Diver Sales Estimates

    Revenue Category Revenue per

    Purchase % of

    Divers* Total

    Revenue Scuba Course (excluding books, materials) $100.00 100.00% $ 100.00 Course Materials $50.00 100.00% $ 50.00 Mask $45.00 88.00% $ 39.60 Fins $70.00 88.80% $ 62.16 Snorkel $15.00 87.40% $ 13.11 Regulator $500.00 36.50% $ 182.50 BC $500.00 36.10% $ 180.50 Computer $500.00 22.20% $ 111.00 Dive Travel** $980.00 78.00% $ 764.40 TOTAL REVENUE PER DIVER (average) $ 1,503.27 Number of new divers in the US (2011) 148,921 Total Industry Sales to New Divers (2011: US only) $ 223,868,471.67 *Based on Active Diver Study, DEMA, 2006 and PADI, 2003, Certified Diver Study Dive Equipment Purchaser Profile

    Largest Single Group of Customers Who Bought Diving Equipment (n= 101,000 equipment customers) Income Equipment Purchaser Compared to US Overall

    Median Household Income: $124,295 $53,935 Mean Household Income: $155,901 $65,258 Per Capita Income $53,762 $24,752 Age of Householder Equipment Purchaser US

    35 54 57.6% 43.0% 55 - 64 17.6% 13.3%

    Marital Status Equipment Purchaser US Males, Never Married 19.4% 30.0% Males, Currently Married 75.4% 58.9% Males, Divorced 3.7% 8.6% Females, Never Married 16.1% 23.9% Females, Currently Married 72.7% 54.9% Females, Divorced 5.5% 10.8% Household Composition Equipment Purchaser US Married Couple and Family 78.9% 51.7% Married Couple-Children under 18 40.9% 23.5% Married Couple no child under 18 38.1% 28.1% Average Household Size 2.91 2.66 Housing Equipment Purchaser US Owner Occupied 94.1% 66.5% Owner Occupied, Single Detached 89.0% 53.6% Median year structure built 1974 1966 Median Home Value $359,016 $161,077 Educational Attainment Equipment Purchaser US High School Graduate Only 11.7% 28.6% Associate or Bachelors Degree 41.0% 21.9% Masters, Professional or Doctorate 27.3% 8.9% Occupation Equipment Purchaser US White Collar 86.2% 60.5% Blue Collar 13.8% 39.5%

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    International Growth Committee Update Stephen Ashmore, Chair

    DEMA has reached out internationally to grow the Diving Industry using partnerships with select organizations also interested in growing th