2022 DEMA Annual Report

TABLE OF CONTENTS

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WHAT IS DEMA?

The Diving Equipment and Marketing Association is a non-profit trade association . More than that, DEMA is a community of professionals often working together and sharing what they know DEMA provides members and the Industry with tangible benefits that are funded by earnings from the Industry’s participation in the annual DEMA Show, sponsorships, and from DEMA membership dues . Importantly, DEMA channels earnings BACK INTO the Diving Industry, creating market and industry research, guiding legislation and regulatory issues to help the Industry, developing professional and marketing programs, and producing other Industry efforts, all for the benefit of DEMA Members . DEMA doesn’t take money out of the Diving Industry .

As with any year, there are ongoing business challenges, challenges which continue to be made more difficult since COVID-19 . DEMA continues to seek out ways to make it possible for Industry

participants to collaborate with the Association and with each other, and to be successful Most of all, DEMA is a community of diving professionals who share a similar goal – to come together to grow the diving industry worldwide .

DESCRIPTION

Worldwide trade association for the recreational diving and snorkeling industries; Includes more than 1,100 members worldwide .

DEMA’S MISSION

Bringing businesses together to Grow the Diving Industry worldwide.

STRATEGIC GOALS

Build a community among DEMA Members with a culture and environment that will produce valued relationships .

Create worthwhile opportunities for DEMA Members to share and exchange

information and knowledge .

Provide learning opportunities that are responsive to DEMA Member needs and relevant to the changing dynamics of the Diving Industry .

Be at the forefront of addressing the legislative and regulatory initiatives that affect the Recreational Diving Industry .

STRATEGIC OBJECTIVES

Engagement: To provide a community culture in the Diving Industry through personal interaction .

Industry Practices: To model and foster an inclusive culture within the Diving Industry by sharing useful and successful practices originating from DEMA Members and the Industry .

Innovation: To create and deliver new value for DEMA Members .

Education: Through a culture of engagement, provide relevant professional development along the continuum of careers and activities within the diving community .

Resources: To serve as a resource for the Diving Industry, including:

• Sharing useful and successful business and management practices

• Industry Research

• Appropriate Standards

• Creating opportunities for the DEMA community to advance personally and professionally through collaboration

TACTICAL GOALS:

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kinds, create new customers of all ages, drive consumers into retail stores and resorts, and promote customer retention

3 Dedicate resources to preventing potential legislation which could adversely affect the Industry .

4 . Engage in marketing research programs which will:

• Define the universe of divers .

• Determine the rate of erosion among existing divers .

• Determine the number of entrylevel scuba certifications that take place in the United States and the Caribbean each year .

• Seek opportunities to obtain global data on diver certification and participation .

• Provide retail operational data .

5 . Engage in activities that promote the health of aquatic resources while protecting diver access to those resources .

COMMITTEES:

Committees are made up of DEMA Members and may include Board members or other volunteers from within the Diving Industry These committees are advisory to the Board of Directors and DEMA Staff and bring a wealth of experience to the Association . Board Committees are chaired by DEMA Board members, while Program Committees can be chaired by members who are not directors .

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. Produce an annual trade event for the Industry which serves the needs of its stakeholders and produces a successful financial outcome for the association .

. Engage in marketing programs that promote non-commercial diving of all

Committees help to provide input to the DEMA Board of Directors and Staff . Having opinions and insight from the diving community is critical, and the learning curve works both ways; many volunteers learn the inner workings of a nonprofit business and trade association, including the nuances and challenges of providing the best services and promotions that meet the needs of all five stakeholder groups simultaneously .

THE 2022 DEMA BOARD OF DIRECTORS

A1-Manufacturing

• Mike Hollis, Pro Asia

• (#2 Seat Currently Vacant)

A2-Diver Certification and Training Agencies

• Tom Leaird, Scuba Educators International

• Jeff Mondle, PADI Americas

A3-Dive Consulting, Media, Non-Retail Service Providers, and Publishing

• William Cline, Cline Group Advertising

• Dan Orr, Dan Orr Consulting

Executive Committee

A4-Retailers

• Bill Cole, Sea Experience

• Patrick Hammer, Dive Right In Scuba

A5-Travel & Resorts

• Bradley Barnett, Clearly Cayman Dive Resorts

• Steve Weaver, Dream Weaver Travel

2022 BOARD/STANDING COMMITTEES

BY MEMBERS SERVING ON THE DEMA BOARD)

Finance Committee

• Dan Orr, Chair

• Patrick Hammer, Senior Vice Chair

• William Cline, Vice Chair

• Bradley Barnett, Treasurer/Secretary

• Bradley Barnett, Chair

• Tom Leaird

• Tim Webb

• Mike Hollis

Manufacturing Committee

• Mike Hollis, Chair

• (#2 Seat Currently Vacant)

DEMA’s full committee list appears in this report under Member Engagement . DEMA Member companies with an interest in serving on future committees should contact DEMA’s Membership Coordinator, Alicia Vasquez, at alicia@dema .org

MEMBER ENGAGEMENT

WHY BECOME A DEMA MEMBER?

Why become part of any association? Aside from contributing to the “greater good” of your Industry, businesses and people who join associations do so because it helps them work with others in the same industry to solve a business problem or achieve a goal . Now more than ever, our industry needs to work together during these difficult times to make our industry stronger . Members are at the heart of the Diving Equipment and Marketing Association, and DEMA is uniquely positioned to help address concerns from various industry stakeholders, who sometimes have conflicting priorities

No single individual, stakeholder group, or vendor can bring businesses together to grow the diving industry and solve the issues that the industry faces . As a non-profit trade association, DEMA’s mission is to bring the various business stakeholders together to grow the Diving

Industry . DEMA recognizes that the most successful businesses and business professionals:

• Become part of the diving community through networking and communication, supporting a culture and environment that produces valued business and personal relationships .

• Share and exchange information and

knowledge within the Community .

• Learn more about running a diving business through education and experience programs that are responsive to changing business needs and relevant to the dynamics of the Diving Industry .

• Participate in legislative and regulatory initiatives that work for a better environment while positively affecting their business .

These are among DEMA’s strategic goalsthe very strategies and goals that help fuel businesses and personal growth . While a DEMA membership also provides businesses with access to direct benefits in terms of products and services, DEMA most importantly helps businesses and professional members move along the path of success .

DEMA is a unique trade association because membership includes participants from the entire, vertical, Recreational Diving Industry “sales cycle,” including non-diving businesses connected to DEMA Members by selling products and services to dive professionals . Membership’s stakeholders include:

• A-1 Manufacturers and Distributors of Diving Equipment, including Manufacturing Reps

• A-2 Diver Certification and Training Agencies

• A-3 Diving Publications, Media, Diving Industry Consultants, Associations and Non-retail Service Providers

• A-4 Retail Distribution of Diving Goods and Services

• A-5 Dive Travel and Resorts

• Associate Members - those organizations, firms, partnerships, associations, or individuals who are ineligible for any other classes of Membership and which subscribe to the Objects and Purposes of the Association .

COMMUNITY BUILDING THROUGH

NETWORKING AND COMMUNICATION

The recreational diving community includes thousands of professionals working as business owners, employees, contractors, instructors, diving leaders, and more . We all learn from each other through a variety of resources, and while nothing beats face-to-face learning, networking, and idea exchanges with real people in real-time, we have all learned that it is still possible to connect, learn and grow using virtual, online tools when we must . One key diving community benefit for DEMA Members is the annual DEMA Show, including educational opportunities and various kinds of meetings .

During DEMA Show the DEMA Association sponsors professional development on a variety of topics, but just as important are the chances to learn from other companies in the industry; those who exhibit and provide professional education directly related to their own products and services .

Networking is more than just meeting at the bar after Show hours It involves “engagement” with the activities that are beneficial for your business and personal growth . People and organizations (including DEMA) learn by listening to others .

MEMBERS HELPING MEMBERS

One thing we have learned over the past couple years is that community and learning to lean on one another is incredibly important during trying times With the help of its members, DEMA helps the victims of catastrophic storms and other occurrences with the DEMA Disaster Assistance Program; “Members Helping Members,” building a bridge of assistance for those affected by these disasters while permanent aid is being requested from the appropriate government, private or public agencies .

The MEMBERS HELPING MEMBERS Program may provide any or all of three types of *Disaster Assistance:

1 . Member to Member Assistance: DEMA Member companies will be asked to provide a direct link of assistance to those in affected areas . Manufacturers and other travel and service provider companies will have a direct assistance line to accommodate companies that need help recouping from such a tragic event to help get their feet back on the ground .

2 . Exhibitor Assistance: Designed for companies exhibiting at the DEMA Show, each company involved and from specific affected regions may apply for funds to help them get to the trade show, where promotional opportunities can help them get back into operation . Affected companies will apply for the assistance funds through the DEMA office, and funds will be awarded to companies exhibiting at the show .

3 . Attendee Assistance Program: Designed for Registered DEMA Show Buyers who are staying in the DEMA block of hotel rooms, attendees can receive a complimentary onenight hotel stay (base rate only . Does not

include Tax and Service Fees) . When available, this program is limited to one buyer from each retail store and for reservations made within DEMA’s hotel block . Attendees from affected retail stores will have two weeks to submit receipts following the show for reimbursement . *In general, a “Disaster” will be defined as any event that is declared such by an involved government entity . Applications for assistance will be reviewed on a case-by-case basis .

ADVOCACY ON BEHALF OF THE DIVING COMMUNITY

Participating in DEMA’s advocacy efforts provides ample opportunity to engage with others, listen to and present various sides of an argument (there are rarely only two sides) and achieve a satisfactory outcome for your business, your personal growth, and the industry . Advocacy through DEMA’s Public Policy Committee and the involvement of the DEMA Membership works to keep the diving community informed and involved .

The entire Public Policy effort for 2022 can be readily seen in the pages of this Annual Report . Using virtual and in person meetings, many divers and diving professionals came together

again this year to help advocate for the diving community in premier diving states such as Florida, and to promote the use of Marine Sanctuaries all over the United States . These opportunities for DEMA Member involvement, from personal testimony to message-writing campaigns direct to lawmakers, tie us together and make individual company efforts far more effective . Importantly, the voice DEMA brings to the legislative table through DEMA Members makes a difference to the environment and the regulatory situation, keeping dive sites protected and accessible to the diving community .

MEMBER RESEARCH DRIVES DEMA PROGRAMS—DIVING COMMUNITY CHAMPIONS

Listening to the needs of Members is critical for the success of the industry and for DEMA . DEMA’s own member-level research helps to establish programs and provides more engagement opportunities . In surveys DEMA Members have indicated their desire for DEMA to “Represent the field of recreational diving to the public . ” This desired benefit shows up consistently in the top five most desired benefits when members are

The Diving Community Champions Award recognizes DEMA Member Companies who are utilizing recreational diving to help advance society and their communities and who makes these community efforts known to the general public.

Pictured: 2021 Diving Community Champion Recipients

surveyed, even when members are segmented by time in the industry, experience, and other factors .

The Diving Community Champions Award recognizes DEMA Member Companies who are utilizing recreational diving to help advance society and their communities and who makes these community efforts known to the general public . Criteria for Diving Community Champions include:

Reach of the Activity, Project, or Program

• Is the project or program local, national, or international in scope (all qualify)?

• How many were impacted by the nominated activity?

• How did the activity or project positively impact the DEMA Member business’ communities or society?

• All sizes and scopes of projects and activities are eligible, but the program should command appropriate resources to have the greatest possible reach; the size of the DEMA Member Company is considered when reviewing this criterion .

Positively Showcasing Recreational Diving to the General Public

• Does the program or project utilize recreational diving to demonstrate diving’s significant contribution to the general public?

• Does the activity or project benefit recreational diving or depict diving in a positive light?

Realizing Objectives and Outcomes

Results should demonstrate how the program or project made a difference to the general public using recreational diving as a catalyst and achieving the company’s defined and measurable objectives . The volunteer Diving Community Champions Review Committee select the five finalists who are then voted upon by the DEMA membership .

THANK YOU TO OUR VOLUNTEERS!

This year DEMA has depended on available volunteers to keep essential committees and activities going . DEMA invites all volunteers to attend the DEMA Membership Meeting on Wednesday, November 2nd at 8:30 AM Eastern time to be recognized for their hard work during the year . We salute all volunteers and their effort to help grow the diving industry by working together

INTERNATIONAL MEMBERSHIP

• Terry Cummins, TC-IBC Consulting

• Craig Lees (Chair), Suunto

• Dan Orr, Dan Orr Consulting

• Peter Symes, X-Ray Magazine

• Steve Weaver, Dream Weaver Travel

PUBLIC POLICY

• Stuart Cove, Stuart Cove’s Dive Bahamas

• Jim Gunderson, Divers Alert Network

• Al Hornsby, Professional Association of Diving Instructors

• Tom Leaird, Scuba Educators International

• Jeff Nadler, Professional Association of Diving Instructors

• Dan Orr (Chair), Dan Orr Consulting

• Carlos Santana, Hawaiian Islands Recreational Scuba Association

RESEARCH

• William Cline (Chair), Cline Group Marketing

• Cal Evans, Uncle Cal’s Dive Club

• Shelli Hendricks, Blue Horizons Solutions

• Bob Kessler, Indiana University

• Christine Tamburri, Diver’s Alert Network

• Jeff Tennant, Buckeye Dive Club

FINANCE COMMITTEE

BRADLEY BARNETT, CHAIR (BOARD TREASURER)

The Finance Committee provides oversight to all budgetary activities of the Diving Equipment and Marketing Association (“DEMA”), approves the budget for the fiscal year, and reviews DEMA’s financial transactions .

DEMA’s financial standards are developed using Generally Accepted Accounting Principles . In addition to following these high standards, DEMA also retains the services of an outside professional accounting firm to conduct an annual review of all financial activities of the Association, as well as periodic evaluations of financial data The association’s financial statements are available on www .dema .org for member review .

GIVING BACK TO THE INDUSTRY

One of the most important objectives of the Association is the opportunity to place money back into the diving industry for business purposes . Since January 2003,

DEMA has thoughtfully allocated money to successful promotions and other businessrelated efforts that were then evaluated for their return on the investment, using standard financial evaluation techniques .

DEMA considers funding many different projects and allocates funds to these projects only after taking the following into careful consideration:

PROJECTS MANAGED DIRECTLY BY DEMA (BOARD OR STAFF)

This is the most common type of project, usually involving extensive committee and Board discussion, plans and evaluation prior to implementation . Projects of this nature may be proposed internally or by an outside entity, but are managed by DEMA Staff with Board supervision . As such:

• Projects are under direct control

of the DEMA Board

• Project costs can be more easily evaluated and controlled

• Project success can be more easily and accurately measured

• Compliance with anti-trust regulations can be more easily monitored

• Compliance with association objectives and corporate standards can be more easily monitored

• Safety risks can be mitigated more easily

Projects managed directly by DEMA require evaluation by DEMA staff, recommendations to the Board and Board approval .

PROJECTS NOT DIRECTLY MANAGED

BY DEMA

When projects not managed directly by DEMA staff are considered for DEMA funding, the following additional requirements are considered:

• Projects are NOT under direct control of DEMA Board or staff, therefore,

additional information is required before approval of funding .

• DEMA sets limits on funding to prevent cost overruns and requires periodic reports from the project management team .

• Clear objectives and evaluation measures must be provided by the team managing the project prior to funding .

• Written information must be provided to DEMA regarding the individuals involved, their qualifications to conduct the project, the responsibilities of each, and the terms, limits and conditions of the project .

• Project proposals of this type are reviewed by DEMA counsel prior to approval .

• DEMA must be indemnified against losses, injuries, violations of anti-trust regulations and laws, and other issues appropriate to the project in question .

• Projects must DIRECTLY benefit the overall diving industry .

• Consideration is given to DEMA member companies, when appropriate .

• Adequate liability insurance naming

DEMA, staff and directors is required to be incorporated into any funding agreement as appropriate .

• Approved project funds can only be dispersed after a written agreement is executed .

Projects not directly managed by DEMA require evaluation by DEMA staff and, in some cases, may require evaluation by outside sources . Such evaluation by outside sources may involve additional cost to the team proposing the project prior to recommendations being given to the Board and prior to the necessary Board approval .

DEMA ANNUAL FINANCIAL REPORT

Pursuant to the Bylaws of DEMA, you are hereby notified that you have the right to receive a copy of the DEMA Annual Financial Report upon request .

This Annual Report and the Balance Sheet, Income Statement, and Statement of Changes in

Financial Position constitute the DEMA Annual Financial Report . As Treasurer, I hereby certify that those accompanying documents were prepared from the books and records of DEMA . Financial Statements are available to DEMA members via www .dema .org and DEMA’s Annual Report is posted each year on its website, as well .

The names and addresses of current members of DEMA are located at the DEMA Office at 6050 Santo Road, Suite 220, San Diego, CA 92124 .

In 2022, DEMA engaged in no transactions which involved more than $50,000, or aggregating more than $50,000, with the same person, and in which any director or officer of DEMA or any holder of more than 10% of the voting power of DEMA had a direct or indirect financial interest

In 2022, DEMA paid no loans, guaranties, indemnifications, or advances to any officer or director of DEMA . ■

NOMINATIONS COMMITTEE

JEFF MONDLE, CHAIR

The job of the DEMA Board Nominations Committee is to research qualified industry professionals who may be interested in serving on the DEMA Board of Directors and recommend them as Board Candidates for election by the DEMA Membership . By researching and recommending qualified and competent individuals, the Nominations Committee is helping to bring the best in leadership and governance to the association .

The DEMA Bylaws indicate that the designated representative of any Regular Class A Member company in good standing has the right to hold a seat on the DEMA Board of Directors . The task of the Nominations Committee is to find the best Applicants and Candidates for Board service . A Nominations Committee that researches and recommends the most qualified Applicants and Candidates will help ensure that the association is well-governed and well-lead .

DEMA’s Nominations Committee is comprised of five (5) members of the current DEMA Board of Directors . Specifically, the five Committee members are those current Board members whose terms are not expiring in the election year being considered . Additional Committee members can be chosen from among Board members who are not running for re-election as well as from the voting delegates of the DEMA membership, but all Committee members must be from DEMA Member companies renewed for the current year . The Nominations Committee included Brad Barnett, Clearly Cayman Resort; Patrick Hammer, Dive Right In Scuba; Craig Lees, Suunto; Dan Orr, Dan Orr Consulting; and Jeff Mondle (Chair), PADI .

Definitions:

• Applicant: Individual expressing interest in running for the DEMA Board, who has also

completed the requirements for consideration by the Nominations Committee . Individuals under consideration are reviewed on a variety of topics, among them qualifications, interest, current membership, availability, and commitment for Board service . Applicants receive a questionnaire from the Nominations Committee and are evaluated using the criteria expressed in this document .

• Candidate: Individuals who have met the criteria for Board Applicant and who are recommended by this Committee to the current DEMA Board for further consideration

• Nominees: Candidates who have completed all requirements and are approved by the DEMA Board to participate in the competitive Board election process .

WHAT DOES THIS COMMITTEE DO?

The Nominations Committee has two primary tasks:

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. Search for and recommend qualified Applicants as potential Candidates .

. Ensure that administrative requirements are met when bringing Board Nominees to the DEMA Membership for their voting consideration .

RECOMMENDATION OF APPLICANTS AS POTENTIAL CANDIDATES

This Committee develops a list of Applicants by:

• Researching individuals who may be qualified and competent to serve

• Reviewing these individuals’ qualifications for Board service and determining the individual’s interest in Board service .

• Following a thorough review, using a Committee voting process, recommending

qualified Applicants to the current DEMA Board for consideration as Candidates . The Committee’s recommendations are determined by simple majority-ofcommittee vote . The Chair of the Committee votes on recommendations for Board consideration only to break a tie vote .

• When the committee recommends that Applicants become Candidates, the Nominations Committee has completed the search and recommendation process with which it is charged .

MEETING ADMINISTRATIVE REQUIREMENTS

The Nominations Committee also ensures the requirements as set forth in the DEMA Bylaws for Applicants and eventually for Board Candidates and Nominees . The Nominations Committee delegates this work to the DEMA Staff who generally manages this process and reports progress and completion to the Committee .

DETERMINING APPLICANTS FOR BOARD SERVICE

Serving on the DEMA Board requires competency in leadership and the ability to govern – skills that reach far beyond the DEMA bylaws requirement that potential Candidates must fall into a given diving industry stakeholder group to serve .

The competency to serve is the deciding factor as the Nominations Committee considers recommending an Applicant to the DEMA Board . Committee members review the following questions about potential Applicant recommendations:

• Does a potential Applicant have basic leadership skills (not an ability to manage, but to lead)?

• Does the Applicant have at least a threeto-five-year horizon in their thinking?

• Can the Applicant guide the association into the future?

• Can the Applicant effectively direct DEMA’s resources to achieve its goals and objectives?

• Does the Applicant have the ability to inspire and empower others?

• Can the Applicant build teamwork among peers with different needs and interests?

• Can the Applicant demonstrate their leadership abilities, not just articulate them?

• What has the Applicant done to show that they can move people and the organization in the right direction?

• What examples can the Applicant give where they have been able to cultivate productive teamwork?

• In what instances has the Applicant skillfully and creatively directed resources to accomplish objectives?

• Can the Applicant maintain the Board and organization’s requirement of confidentiality?

In addition to competency in leadership, the Applicant should have a track record of performing in a “governance” capacity:

• Does the Applicant know what it means to govern?

• Does the Applicant understand the duties and functions of a board and the role of a director for DEMA?

• Does the Applicant know the duties of care and loyalty, and exercise independent, but respectful, judgment?

• Can they give examples of how they

have exercised these duties?

• Does the Applicant understand that “governing” is much more difficult than “managing?”

• Can the Applicant demonstrate how they have governed appropriately and effectively in the past?

• Can the Applicant provide specific instances where they have been able to elevate their peers from micromanaging to governance?

• What has the Applicant done to show that they can make judgments in the interests of the entire DEMA membership and deal with conflicting interests?

• Is the Applicant aware of the three-tofive major issues impacting the diving industry in the immediate future?

The DEMA Elections process is an important one, requiring that the Nominations Committee, Applicants, Candidates and Nominees consider the ramifications for DEMA and the for the diving industry . This year’s Nominations Committee has been successful in selecting Candidates for Board recommendation and is pleased to announce the following slate:

Category A1 – Manufacturers, Distributors and Affiliated Field/Sales Representatives:

• Patrick Danko, Garmin

• Tom Phillipp, XS Scuba

Category A2 – Diver Certification and Training Agencies, and Affiliated Field/Sales Representative:

• Derik Crotts, PSS Worldwide

• Tom Leaird, Scuba Educators International

DEMA SHOW COMMITTEE

JENNY COLLISTER, CHAIR

DEMA SHOW 2022: NOVEMBER 1-4 IN ORLANDO, FL

As DEMA Show 2022 returns to Florida – the U .S . state with the largest population of new divers –we are excited to welcome the industry back to an event that includes most pre-pandemic DEMA Show elements, including the Wave Makers Award, Diving Community Champions Awards, and a great complement of exhibitors and activities .

The 2022 DEMA Show Committee consists of DEMA Members with an interest, experience, and an understanding of trade shows and the needs of exhibitors and attendees . The 2022 DEMA Show Committee included: Jenny Collister (Chair), Reef and Rainforest; Bill Cole, Sea Experience; Merial Currer, Patriot Scuba; Richard Thomas, International Scuba; and Tim Webb, Caradonna Dive Adventures .

This Committee is responsible for evaluating data from attendee and exhibitor surveys, assisting with the core artwork used for promoting DEMA Show, and evaluating various elements of the Show based on exhibitor and attendee feedback . When needed, this Committee also participates in the selection of Show venues and making on various areas of show management such as registration categories and processes Much of the work produced by the 2022 DEMA Show Committee will apply to the 2023 DEMA Show, currently scheduled for November 14 – 17, 2023 in New Orleans, LA .

The DEMA Show Committee workplan for 2022 included:

• Attendee and exhibitor postShow evaluations .

• Pre-Show registration and hotel data .

• Reviewing the “Consumers at DEMA Show” survey data

• Evaluation of various DEMA Show features such as the current Image Resource and Technical Diving Resource Centers for 2023 .

UNDERSTANDING DEMA SHOW ATTENDEES

Using attendee surveys and data collected during registration the committee reviewed:

• Demographic data – who attends DEMA Show?

• Attendee positions in their company

• Various attendee trends from 2013 – 2021 . The purpose of using the attendee evaluations is to gain better insight into the needs of Show attendees Beyond demographics, these evaluations provide an understanding of which features were most useful, how attendees order and buy products from exhibitors, and other preferences . Not only is this helpful for DEMA Show planning purposes but this kind of information makes it easier for exhibitors to get a better handle on how they can sell more and meet the needs of attendees . Some key attendee findings include:

• Consistently each year since 2016, greater than 30% of attendees are at their first DEMA Show – this often means these attendees are new to the industry, impressionable, and often looking for new vendors . This is also a reflection of employee turnover in the diving industry, as enthusiastic divers become dive professionals .

• More than 30% of attendees are registered as “Retail Buyers,” while more than 22% of attendees are registered as “Instructors . ” DEMA’s own diver behavior data indicates that more than 60% of dive consumers rely on their diving instructors for advice regarding the equipment brands and models they should buy, as well as their continuing education courses and travel

recommendations . Instructors should be highly targeted attendees for vendors .

• Among attendees, the largest single primary job category is Owner/ President/CEO/COO, at 37% .

• More than 52% of attendees indicate they have the final say in store purchasing decisions .

• Almost 93% of attendees spend time on the exhibit floor . The primary reasons for visiting exhibits include seeing new products, evaluating new products and services for purchase, and establishing relationships with vendors .

• Attendees believe the pre-qualification of Buyers is helpful when speaking to vendors on the floor .

• According to attendees, the top five most important reasons for attending DEMA Show include:

1

. Meet with other members of the industry – networking .

DEMA PRE-SHOW REGISTRATIONS AND PRE-SHOW HOTEL BOOKINGS

To make recommendations on different tactics or strategies the Committee reviewed registration and hotel reservation data presented for both the Orlando-based and Las Vegas-based DEMA Shows staged from 2013 – 2021 .

This data provides a better understanding of the patterns of pre-registration and preshow hotel bookings . It is also hoped that this data will be useful in projecting these areas for DEMA Show 2023 in New Orleans .

Results from the attendee data evaluation included:

• Registration data for both Orlando and Las Vegas follow similar purchase patterns A significant number of attendees register by four weeks out from show staging, and another large group register within the last week, including on show site .

• The DEMA hotel block typically opens 3035 weeks out from the show staging . For the 2021 Show, when viewed by percentage of total hotel block and total registrations, the same registration trend was seen . The 2021 hotel block pick-up also followed the same trend as an “average” Las Vegas-based DEMA Show but for this show the hotel and registration timing were “compressed” as the hotel block opened later than is typical .

Committee members discussed ideas that might help to accelerate attendee registration:

• Early bird pricing (already in place)

• Additional promotional opportunities for those who register early, like the

electronic 2021 “I’ll Be There” campaign .

• Consider publishing a list of companies that register early (by specific cut-off date/time) .

• Involve exhibitor sales representatives to assist attendees in getting registered

• Consider additional benefits for “Buyers . ”

UNDERSTANDING DEMA SHOW EXHIBITORS

As DEMA Show is a trade-exclusive event, exhibitors have a distinct advantage: by selling to a business exhibitors can book sales of large quantities of equipment, group trips, or quantities of training materials or services to a store or outlet . In contrast, selling at a consumer show requires selling one travel package, one certification, or one regulator at a time . When companies consider labor shortages and costs of being at a consumer event versus a trade event, the trade event clearly provides a much higher return on their show investment

This Committee reviewed exhibitor survey data with an eye on how DEMA could help exhibitors be even more successful during DEMA Show . Analyzing the data from DEMA Show 2016 to 2021, several key factors were seen:

• 35% of exhibitors have been exhibiting at DEMA Show between 2 and 10 years

• Most companies ranked “attracting new customers” and “marketing existing products” as their main objectives for exhibiting at the Show . Most companies found their biggest successes at DEMA Show in “marketing existing products” and “meeting with customers . ”

• Although only 25% of exhibitors planned to focus on closing sales on site, more than 46% were successful in doing so .

• More than 33% of exhibitors DID NOT offer a “Show-ONLY special” during DEMA Show .

• More than 62% introduce new

products at DEMA Show .

• The most important target customer for exhibitors are Retail Dive Centers and Instructors . Clearly most exhibitors are aware of the influence wielded by instructors in the diving industry .

• About 46% of exhibitors issue an advanced promotion piece to potential attendees ahead of DEMA Show .

• By far the social media most used to selfpromote the company’s presence at DEMA Show is Facebook, followed by Instagram and Twitter . Despite the popularity of video, only about 12% of exhibitors promote their appearance at DEMA Show on YouTube .

Using the exhibitor survey information, the Committee made several observations:

• Are there different exhibit promotional messages we should be using to

attract non-exhibiting companies?

• Based on what we see in the survey responses, are there different messages or approaches to get more participation from current exhibitors?

• How helpful is pre-qualification of DEMA Show buyers? Is this a missing message?

• We see the success rates of exhibitors (which are self-reported) . Should DEMA take a role in helping more exhibitors be successful at the trade show?

• Would training help?

• If so, how and when should it be delivered?

• How would you encourage exhibitors to participate?

• Will location of the show make a difference (New Orleans)?

COMMITTEE SUGGESTIONS

• The value of the “Buyer” badge needs to be emphasized to exhibitors .

• First time exhibitors may need assistance to understand more about being successful

• Exhibiting, especially at a trade-exclusive event, may not be within the experience of some exhibiting companies . DEMA should consider producing online exhibitor education sessions to help exhibitors who wish to learn more .

SURVEY RESULTS – CONSUMERS AT DEMA SHOW

The results from the “Consumers at DEMA Show” opinion survey appear in the Research Committee section of this Annual Report . This Committee reviewed this information, concluding that overall, the industry is not in favor of opening DEMA Show to consumers at this time .

DEMA SHOW TIMING AND LOCATION

SELECTION

DEMA Show locations and timing are determined using Attendee and Exhibitor surveys as well as by researching convention center and hotel availability . Because DEMA Show is one of the largest trade shows in the United States, there are a limited number of convention facilities large enough to hold the annual event . When evaluating and selecting the convention facilities, city, and hotels, DEMA uses Board-approved criteria including:

• The city must have 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

• The Show city must be 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 .

• “Blended” labor rates for the city must be within 10% of the median average as compared to the convention industry market for the previous five years .

• The convention facility must meet DEMA’s exhibit and meeting space requirements, and be in a location convenient to major hotels, an international airport and city points of interest . The minimum conventions center size is 500,000 gross square feet .

• The convention facility must include a minimum of 30 meeting rooms in the convention center, capable of holding at least 50 to 100 people while using classroom style seating .

• There must be first-class hotels convenient to the convention and exhibit facility for up to 10,000 attendees . Hotel facilities should accommodate a minimum of 1,000 to 1,200 rooms peak night pick up, with 3,000 minimum total room nights required within DEMA’s block . This number of hotel rooms must be within a 5-mile radius/15 minutes travel time (whichever is less) of the convention center

CONVENTION FACILITIES AND DEMA SHOW

DEMA continues to select convention facilities that help ensure DEMA Show is a sustainable event

Contracting with the Las Vegas Convention Center, Ernest R Morial Convention Center in New Orleans and the Orange County Convention Center (OCCC) in Florida is purposeful in that these convention facilities are cutting edge in their efforts to reduce waste and environmental impacts

The award-winning Orange County Convention Center is one of the largest LEED Gold certified convention centers in North America . The Center of Hospitality offers several unique

services to clients, exhibitors, and attendees focused on saving energy, time and money . OCCC was the first convention center in the United States to have its Environmental Management System ISO certified and the third to receive the APEX/ASTM certification .

ORANGE COUNTY CONVENTION CENTER IS STATE OF THE ART IN SUSTAINABILITY

The OCCC has demonstrated industry and community leadership by pioneering pathways for large venues to achieve continuously improving levels of sustainability stewardship . Just some of the efforts include:

• Pedestrian Bridges: Continued buildouts of safe, direct connections from adjoining hotels to the OCCC

• Alternative Transportation Programs: Fostering visitor and building occupant use of multiple alternative transportation options to and from the OCCC

• Center-to-Table Gardens: New indoor vertical gardens producing fresh, delicious vegetables and herbs from the Westwood Lobby OCCC is proud to be a leader in innovative urban agriculture .

• Food Donations: OCCC assists clients, helping to send over 25,000 pounds of food annually to local community organizations like Second Harvest of Central Florida, Christian Service Center, and the Ronald McDonald House Charities

• Composted Food Waste: Food scraps that can’t be donated are recycled into electricity and fertilizer .

• Natural Gas: 85% use of natural gas for cooking OCCC kitchens .

• District Energy Program: The OCCC is part of an innovative chilled water production agreement which provides energy efficient and environmentally friendly air conditioning to Convention District hotel participants

• Renewable Energy: The OCCC campus provides five different solar energy programs used by clients and other stakeholders for demonstration, training, and research .

• Building Efficiency: The OCCC incorporates natural lighting, advanced technology, and employee ingenuity to achieve buildings which are 87% more energy efficient per square foot than similar buildings .

• Low Impact Development: Aesthetically pleasing and innovative stormwater treatments are used on campus and redirected to natural waterbodies .

• Water Efficiency: Bathrooms use 15% less water than building codes mandate and 100% reclaimed water is used to irrigate the OCCC’s 400-acre campus .

• Waste Reduction: OCCC works with clients and contractors to reduce event waste by 53% since 2004 .

• Recycling Receptacles: Our recycling and waste bins on campus were made from used plastic milk jugs and 100% solar energy .

DEMA SHOW IN TOP 100 SHOWS!

In 2021 DEMA Show was the first trade-exclusive dive show to stage following the worst of the pandemic . DEMA Show 2021 was successful for most exhibitors, and attendees were very happy to return to a face-to-face format .

DEMA Show 2021 was recognized by the Trade Show News Network as being one of the top 100 trade shows in the U S !

This recognition is critical in that it helps DEMA negotiate for good hotel and convention center rates in the most popular three convention cities in the U .S . The DEMA Show Committee and DEMA Board of Directors are grateful for the support of the diving industry, which in turn helps everyone attend and exhibit at future DEMA Shows at the lowest possible cost . ■

MANUFACTURING COMMITTEE

MIKE HOLLIS, CHAIR

The Manufacturing Committee represents all member manufacturers . Representatives on the Manufacturing Committee come from the DEMA Board and can also include non-Board members .

The Manufacturing Committee monitors and allocates monies from the Manufacturers and Distributors Fund, which was established in 1994 when DEMA was re-organized to include all stakeholders in the Diving Industry . The Fund is composed of 5% of the gross receipts from DEMA Show each year and is used at the discretion of the manufacturers to promote recreational diving . The allocation of the funds follows a Board-approved process, and the Manufacturing Committee has been supportive of many different initiatives over the years .

In 2022, the Manufacturers and Distributors

Fund allocated $38,000 in assistance for the industry which included:

• $10,000 for DEMA Show 2022 stimulus funding for COVID protocol related costs (pertaining to social distancing, additional facility cleaning & sanitizing, masks, hand sanitizing stations, additional security, etc .)

• $ 28,000: Legislative Services

MANUFACTURING RESEARCH

During 2022 the Manufacturing Committee began exploring ways to conduct reporting on the health of the manufacturing sector . The decision was made to implement a new Manufacturing Purchase Index (MPI), involving quarterly reporting . The goal of this new program was to provide information on

manufacturing trends in the diving industry .

This manufacturing data can assist with critical decision making for ALL parts of the diving industry and can be used in conjunction with data on certifications as well as on other customer data . It is PAST data but can help with future trends . For example:

Hard goods manufacturers and suppliers:

• A regulator manufacturer makes production decisions based on the new future orders it expects from retailers . Those new regulator orders drive management’s purchasing decisions about dozens of component parts such as high-or low-pressure seats/ poppets, hoses, and orings . Existing inventory balances also drive the amount of production the manufacturer needs to complete new orders and to keep some inventory on hand at the end of the month .

• Parts Suppliers may also make decisions based on this important data . A parts supplier for a regulator manufacturer follows the data to estimate the amount of future demand for its products, including raw materials such as plastic or rubber . Parts suppliers may also be interested in seeing an index on inventory, which affects the amount of production its manufacturing clients must generate

• Proposed MPI information about supply and demand affects planning for manufacturing budgets, managing staffing levels, and forecasting cash flow .

Other members of the diving industry can also benefit from this important data:

• Retailers can use this data as it reflects product availability (especially soft goods) for new customers learning to dive .

• The data can be used by certification organizations as an indicator of trends

in purchasing . Divers that obtain continuing diver education also tend to purchase more equipment .

• Divers with additional education also tend to travel to dive, which can assist with both liveaboard and landbased dive resort forecasting .

• This data is also important for current retailers seeking to expand and informs and encourages new business growth for all retailers: brick and mortar and online .

• All members of the diving industry benefit because DEMA has data that can be utilized to help legislatures better understand the diving industry. The diving community CANNOT easily discuss or change detrimental laws without being able to discuss the current status of manufacturing and other research-based statistics.

For more details on this important program, see the information contained in the DEMA Research Committee section of this Annual Report . ■

PUBLIC POLICY COMMITTEE

DAN ORR, CHAIR

Each year DEMA establishes a Public Policy Committee which includes DEMA Board members, DEMA Member volunteers and DEMA staff . The Committee works directly with the DEMA Office to review U .S . federal and state issues, and international issues when needed The Committee gathers input on various issues from Members of the diving community and provides commentary and data to government officials and organizations through the DEMA staff .

The 2022 Public Policy Committee is composed of Stuart Cove (Stuart Cove’s Dive Bahamas), Jim Gunderson (Divers Alert Network), Al Hornsby (PADI), Tom Leaird (Scuba Educators International), Jeff Nadler (PADI), Dan Orr, Chair (Dan Orr Consulting), Carlos Santana (Hawaiian Islands Recreational Scuba Association), Tom Ingram (DEMA), and Bob Harris, DEMA’s Legislative Advocate .

The Public Policy Committee engages in legislative and regulatory activities which promote the health of aquatic resources while protecting diver access to those resources; the goals include keeping dive sites accessible to divers, managing or reducing government regulation, and keeping dive locations clean and healthy . The Committee advocates for protection of the underwater environment, and actively monitors legislation and government administrative activities in the U .S ., in the different U .S . states and territories, and globally to prevent adverse legislation which may impact diving businesses, may adversely impact the diving environment, or may restrict access to dive sites .

A key element of DEMA’s Public Policy work is to review advocacy issues with a global perspective; for example, if an issue in Florida could have an impact on the recreational diving industry in another country, or another U .S . state or territory,

DEMA will likely pursue action recommended by the Committee . Legislative advocacy often requires substantial association resources (time and money), but advocacy through DEMA’s Public Policy Committee is critical in that it provides all DEMA Members worldwide with a direct voice in the legislative and regulatory process .

During 2021 and 2022 when COVID-19 continued to affect DEMA’s resources, DEMA continued monitoring legislation that could impact the industry, and allocated our limited resources to help prevent the passage of unfavorable regulations .

THE INDUSTRY NEEDS DEMA MEMBERS TO PARTICIPATE!

Public Policy is an area where Members can have a direct impact while engaging with DEMA When DEMA acts or publicly comments on potential legislation DEMA Members receive advance notifications regarding changes to legislation or regulation – whether internationally, or in the U .S . While DEMA acts a voice in legislation, the better strategy is to have Members comment directly to their government officials on issues important to them – numbers make a difference . One of the aims of this effort is to provide such notification far enough in advance of legislative action for Members to act alongside DEMA, multiplying the impact of DEMA’s advocacy activities .

It is also important to note that attempts to influence legislation may be unsuccessful; some favored legislation may not pass out of the legislative body or committee, or an unfavorable bill or regulation may become law or regulation despite objections from DEMA or Industry participants . In the U .S . especially, this is an expected part of the process . But bringing forth the voices of DEMA Members is still the best way to participate in the regulatory and legislative process; sitting on the sidelines most certainly won’t change things for the better .

To the extent possible, the Public Policy Committee reports legislative activity to the DEMA Membership so that they stay informed of issues that relate to the Industry, including business-related activities . In 2022, DEMA published for the first time the DEMA Public Policy Digest, a monthly e-newsletter that reports on issues impacting recreational diving . DEMA solicits input from Committee members and DEMA Members for this e-newsletter, and all embers can reach out to DEMA at publicpolicy@dema .org for input on the Digest, or for advocacy issues impacting their business .

DEMA ADVOCACY POSITION STATEMENTS

FOR 2022

DEMA has adopted the following advocacy Position Statements representing the legislative platform for the association . The Public Policy Committee is responsible for making recommendations on Position Statements to the Board of Directors and advocating specific bills that address approved Position Statements .

Business Management. DEMA supports legislation that eases expenses and regulatory burdens on diving businesses of all sizes .

Communications. DEMA supports legislation to protect the right of all businesses to continue to communicate with their customers and to the public at large in furtherance of their purposes Forms of communications that are considered within this Position Statement include fax, email, telephone, regular mail, mobile and text, all forms of social media, and Internet .

Employment Practices. DEMA supports flexibility in employment practices for all diving businesses . Legislation will be reviewed if it would increase flexibility or restrict employment practices for DEMA members . Employment practices on which DEMA supports increased flexibility include: number of work hours; wages; non-exempt vs exempt employees; rules regarding

independent contractor vs employees; remote employment procedures, and other labor practices .

Environmental Issues. DEMA supports reforms that promote the health of aquatic resources while protecting diver access to those resources, promoting and sustaining clean and healthy places to dive .

Health Care. The diving business community encourages legislation that will allow businesses to offer cost effective health insurance programs to their employees without undue regulation or penalty .

Safety. DEMA supports reforms that help keep divers safe both at the surface and underwater, but which protect diver access to the aquatic realm .

Workers Compensation Insurance.

DEMA supports reforms that simplify the workers compensation system, make workers compensation insurance more affordable while maintaining high quality services to the injured, and support our members’ need to access affordable workers compensation insurance programs .

Insurance and Liability Protection.

DEMA supports reforms that generally improve the defensibility of dive product and service providers and supports the long-term viability and availability of diving-related business and professional insurance .

Scuba Diving and Snorkeling. DEMA supports efforts to grow and expand recreational diving and snorkeling .

Fair Government Practices. DEMA supports government programs that help grow the diving industry, reduce regulatory burdens, or provide business or consumer incentives for participation . DEMA seeks to include recreational diving in government-based programs when beneficial programs that assist non-diving activities are proposed or already exist

2022 DEMA ADVOCACY

During 2022 DEMA devoted resources to numerous and significant diving-related advocacy issues . While not a complete listing of all DEMA’s advocacy efforts for 2022, the reader is directed to DEMA’s Public Policy Digest for more information Issued monthly at no cost to subscribers, this new publication provides upto-date information on many different topics being monitored by the DEMA association .

Some of the important issues are discussed in this Annual Report . Among them are:

1

2

3

4

. New in 2022: DEMA’s Public Policy Digest

. Opposing a Federal Shark Feeding Ban Aimed Only at Divers

. California Prop 65 Mitigation

. Fair Labor Standards Act Exemption for Outdoor Recreational Outfitting Or Guiding Services Employees

5

6

. Bill to Reinstate 4th Quarter 2021 COVID Relief Employee Retention Tax Credit

. Exoneration & Limitation of Liability & Small Passenger Vessel Liability Fairness Act

7

8

9

. Inflation and Labor Shortages Dominate Small Business Issues

. Occupational Licensing and Certifications

. Florida Manatee Deaths and Mitigation

10

11

. Goliath Grouper – Florida Opens a “Limited Harvest”

. Catch and Release Prohibition on Florida Goliath Grouper Spawning Aggregation Sites

NEW IN 2022: DEMA’S PUBLIC POLICY DIGEST

In the first quarter of 2022 DEMA introduced the DEMA Public Policy Digest . The Digest provides a brief overview of some of the hottest topics for the month, impacting members of the diving community . The Digest is available through a free subscription here

OPPOSING A FEDERAL SHARK FEEDING

BAN AIMED ONLY AT DIVERS

In 2022, NOAA and the Florida keys National Marine Sanctuary (FKNMS) issued a revised version of their 2019 Draft Environmental Impact Statement for Florida Keys National Marine Sanctuary (FKNMS)1 which included a prohibition on feeding sharks and other fish in federal waters that are part of the Sanctuary . This new proposed regulation from NOAA (see page 36) extends these same proposed regulations over shark dive operators in federal waters, preventing them from conducting their business . The state of Florida already prohibits shark (fish) feeding in state waters, having enacted this regulation in the early 2000’s through the Florida Fish and Wildlife Commission (FWC), without any scientific basis for doing so .

At the time, FWC enacted this regulation in Florida state waters in reaction to the publicity surrounding the media-mislabeled “2001 Summer of the Shark,” which had nothing to do with shark provisioning ecotourism sites, but resulted from a political and media circumstance

of the time . Since then, FWC has claimed –again without scientific data to support the claim - that shark feeding creates “human safety issues . ” Tagging onto the discredited FWC claim, NOAA also claims that shark feeding creates “human safety issues,” but science from the world’s most renowned shark experts disagree with this assertion . The genesis of this proposed federal rule is likely the FWC, as this prohibition currently exists in Florida state waters, supported by FWC, and these same FWC personnel serve on the FKNMS Advisory Council . When DEMA requested data from FWC on the alleged “human safety issues,” no data was forthcoming.

WHAT ARE THE ISSUES WITH THIS PROPOSED REGULATION?

The issues with this proposed regulation are straightforward:

• Multiple peer-reviewed studies indicate that “provisioning ecotourism” – using small amounts of food to attract sharks for the purpose of observing and photographing them – is not harmful,

1 Office of National Marine Sanctuaries. 2019. Draft environmental impact statement for Florida Keys National Marine Sanctuary: A Restoration Blue print. U.S. Department of Commerce, National Oceanic and Atmospheric Administration, Office of National Marine Sanctuaries, Silver Spring, MD.

and is responsible for creating more shark advocates seeking to protect these animals than any other activity or law.

• Peer-reviewed data corroborates the economic value of provisioning ecotourism, which gives thousands of divers each year the opportunity to actively and safely engage in observing sharks, gaining a better understanding of them

• FWC supports the fishing community while regularly opposing the needs of the diving community and has now pulled the FKNMS into this one-sided support for fishing . This proposed prohibition is a clear example; FWC and FKNMS now oppose shark feeding

FOR DIVERS WHILE PERMITTING

SHARK FEEDING FOR FISHERS . From an economics point-of-view, harvesting of sharks by fishers, while prohibiting shark feeding (and therefore most shark diving), reduces the value of LIVE sharks, while simultaneously increasing the relative dollar value of sharks harvested by fishing .

• Of extreme concern, once prohibited in federal waters in FKNMS, a prohibition on shark feeding in all federal waters is the likely next step This will effectively end using provisioning ecotourism to photograph or observe sharks anywhere in the U .S . and destroy the dive businesses built around this activity . Instead of dispelling the myths about sharks, this prohibition is also more likely to perpetuate them.

DEMA has adamantly opposed this proposed federal rule . Whether you wish to use “provisioning ecotourism” (using small amounts of natural food) to attract sharks to observe them or not, there is NO DATA to indicate diver safety, shark safety, or environmental issues require the U.S. federal government to intervene in this activity.

However, data and recommendations are clear that a far better approach than creating unnecessary regulation is for shark dive operators to utilize guidelines for marine life interactions to prevent harm to people and sharks . The actual marine interactive guidelines themselves have long been available from the Global Interactive Marine Experiences Council (GIMEC) and Project AWARE and the World Wildlife Fund . Studies indicate that almost 90% of shark dive operators actively enforce the use these or other marine interaction guidelines . U .S . federal regulation of this activity is both intrusive and unnecessary . DEMA will continue oppose this effort to unnecessarily regulate fish or shark feeding anywhere in U .S . federal waters .

CALIFORNIA PROPOSITION 65 MITIGATION

Many of DEMA’s member companies are impacted by California Proposition 65, and DEMA has participated in trying to mitigate the impact of this onerous regulation .

Proposition 65 (Prop 65) is a California state law passed in 1986, which affects all products

sold in California, regardless of where they are produced . This law requires businesses to warn California consumers if their products contain threshold amounts of chemicals causing cancer or reproductive harm . Proposition 65 requires warning labels on products containing chemicals listed as known to cause cancer, birth defects or reproductive harm . There are more than 1,000 chemicals currently on the list . Proposition 65 doesn’t stop anyone from selling their products - no matter what chemicals they contain—it is simply a law that requires consumer warning labels under certain circumstances .

Even though Proposition 65 is a California law, it is important for all in the diving industry to understand that it applies to all products sold in the state, regardless of where they are produced . Any product sold in California must meet the Proposition 65 requirements In fact, the only companies safe from the reach of Proposition 65 are those not producing or selling merchandise in California. If you are a multi-state retailer, product distributor, manufacturer, or re-marketer whose products end up in California, Proposition

65 can be costly if you are not prepared.

In 2021 the state of California proposed an update to Proposition 65 regulations . The changes in the updated regulation have made it even more difficult for businesses to comply . The revision requires the use of long form labels, which are problematic for some products (just on physical size alone) and the state did not follow rules regarding public comment .

In March 2021 DEMA commented to the Office of Environmental Health Hazard Assessment (OEHHA) on its Proposed Rule making: Amendments to Article 6, Clear and Reasonable Warnings Short Form Warnings (January 8, 2021) . DEMA opposed the proposal since it is in direct conflict with the Proposition 65 regulations that took full effect on August 30, 2018, following years of development through public discussion and collaboration . DEMA’s comments can be found here .

HOW DOES PROPOSITION 65 IMPACT THE DIVING INDUSTRY AND DEMA MEMBERS?

Aside from the labeling requirements, Proposition 65, as it currently stands, gives consumers and their attorneys the ability to sue businesses that do not include the proper warning labels on products containing chemicals associated with cancer and birth defects . Businesses with ten (10) employees or more that do business in California must comply with Proposition 65 . The warning requirement applies to any business in the chain of distribution, including manufacturers, re-marketers, distributors, and retailers, including out-ofstate companies selling products in California .

The California Attorney General or a district attorney can pursue enforcement However, most suits are brought by private parties claiming to be “acting in the public interest” who will then receive a portion of the fine or settlement ultimately assessed on the alleged violator .

Unfortunately, the law appears to have spawned a predatory trial lawyer industry focused on using Proposition 65 to net large settlements Private lawyers start by filing a “notice of violation” with the Attorney General and the accused business . The notice is detailed in terms of the alleged violation, naming a specific chemical(s) for which there may be inadequate warning and including an expert’s statement meant to support the alleged claims .

Under the law, fines can run up to $2,500 per day per violation . For many faced with Proposition 65 cases, sometimes called “headhunter” suits, it can feel like a shakedown because Proposition 65 lawsuits are expensive to fight, and defendants often settle quickly to avoid the high cost of litigation and daily fines . At times it may be questionable as to whether there has been a violation of the law since there could be limited consumer exposure to the specific chemical .

Proposition 65 is a complex statutory and regulatory scheme . Every case is different, and compliance will depend on the nature of the product and chemical at issue, how the product is sold, and many other factors . For more information, see https://www p65warnings ca gov/

WHAT IS DEMA DOING TO HELP?

DEMA is active in the Proposition 65 Coalition of the California Chamber of Commerce to promote legislation and regulations to decrease the cost of Proposition 65 compliance and to push for less onerous labeling requirements .

Substantive changes to the law itself require a two-thirds vote from each chamber of California’s legislature, making legislative changes difficult to accomplish Nonetheless, DEMA and the Proposition 65 Coalition are looking at every opportunity to create a friendlier environment for conducting business in California .

Additional Proposition 65 Information

• OEHHA Proposition 65 Page

• Listed Chemicals

• California Attorney General Proposition 65 website

• List of AG Settlements Regarding Proposition 65

• Current Proposition 65 Statutes

• Proposition 65 Regulations

FAIR LABOR STANDARDS ACT FOR EXEMPTION FOR OUTDOOR RECREATIONAL OUTFITTING OR GUIDING SERVICES EMPLOYEES

Addressing the issue with seasonal diving employees and the hours they are permitted to work during seasonal activities, Senate bill 4092 (and House companion HR 6280) would amend the Fair Labor Standards Act of 1938 to exempt certain employees engaged in outdoor recreational outfitting or guiding services from maximum hours requirements . These bills provide specific exemptions while providing safeguards for employees . It is designed for any employee principally engaged in outdoor recreational outfitting or guiding services and employed by an employer principally engaged in the business of providing such outfitting or guiding services that—

• Does not operate for more than seven months in any calendar year; or

• Had average receipts for any six months of the preceding calendar year that were not more than 33 1/3 % of its average receipts for the other six months of such year . DEMA, along with a coalition of trade associations working in the outdoor space, supported these bills in the 117th congress . It remains to be seen if the congress acts on these bills before close of this year’s session .

See S 4092 here .

See H .R . 6280 here

BILL TO REINSTATE THE 4TH QUARTER

2021 COVID RELIEF EMPLOYEE RETENTION TAX CREDIT

When the Federal Infrastructure bill was signed into law in late 2021 the COVID business relief provision that was originally made available through the end of 2021 was eliminated . Despite DEMA’s efforts in conjunction with other trade associations to keep the original December 31 date, the infrastructure bill shortened the duration of the Employee Retention Tax Credit (ERTC) so that it had ALREADY EXPIRED as of September 30, 2021 The ERTC was disallowed for the 4th quarter of 2021 .

Businesses that planned for the availability of the ERTC in the 4th quarter were advised to speak to their accountants and financial advisors at the earliest moment to determine how this would impact cash flows and budgeting for the remainder of 2021 and the first part of 2022 . Dive businesses were advised that they could no longer utilize this popular COVID relief tax credit for the fourth quarter of 2021 and would be required to pay these taxes back to the federal government and/or reconfigure budgets .

On December 7, 2021, HR 6161, the Employee Retention Tax Credit Reinstatement Act was introduced in the U .S . House of Representatives by Representative Carol Miller [R-WV-3] . DEMA submitted a letter to members of the House of Representatives asking for their support and issued an Alert, asking dive professionals to comment. Read DEMA’s letter online here.

Unfortunately, this bipartisan bill, designed to assist small businesses, including dive businesses impacted by the government COVID business shutdowns, has not passed out of the House .

Under the current U .S . Maritime Liability laws (46 USC Ch 305 Subtitle III, §30511), after an accident, the owner of any seagoing vessel can limit damage claims to the value of the owner’s interest in the vessel .

While this limitation is typically acted upon after a claimant gives the owner written notice of a claim (and must be acted upon by the owner within six months of that notice), the owner can bring a civil action in a district court of the United States after the accident to limit their liability . This 1851 Maritime Liability law is a time-tested legal action that has been successfully employed by owners of vessels of all sizes - from the Titanic to vessels as small as Jet Skis . The liability law has its origins in 18th century England and was originally meant to promote the shipping business . Currently, vessel owners, including dive vessel owners, pay large fees for liability insurance and this limitation to liability is factored into these insurance rates .

A recent Senate and House bill, sponsored by California Democrats, Representative Salud Carbajal and Senator Dianne Feinstein, would change the current law . Under these bills, owners of small passenger vessels, including dive vessels, could be held legally responsible for maritime accidents . The owners would be mandated to compensate victims and their families regardless of the value of the boat after the incident The bill, if enacted, would apply retroactively to September 2, 2019, and was written in response to the fire on the dive vessel Conception . The text of these bills can be found here: Senate Bill 2805 and House Bill 5329 . These bills were referred to the Subcommittee on Coast Guard and Maritime Transportation but appear not to have moved at this writing .

EXONERATION & LIMITATION OF LIABILITY (HB 6865) & SMALL PASSENGER VESSEL LIABILITY FAIRNESS ACT (HB 5329 AND SB 2805).

Additionally, within the recent Coast Guard Appropriations Bill of 2022, the definition of ‘small vessel’ and the time frame for filing a claim are altered

As dive vessels are specifically targeted by these House and Senate bills, and the claim dates for vessels in the size range typical for dive vessels are altered, DEMA strongly suggests dive vessel owners follow the progress of these legislative actions to determine their next steps .

INFLATION AND LABOR SHORTAGES

DOMINATE SMALL BUSINESS ISSUES

DEMA monitors and reports on retail, travel and manufacturing data from multiple sources including the National Federation of Independent Businesses, Statista, and others . These indices indicate that the current economy, labor issues and especially inflation are hurting small businesses

In April, small business owners in the United States expecting better business conditions over the next six months decreased to a net negative 50%, the lowest in the history of the 48-year-old survey conducted by the National Federation of Independent Businesses and Statista . This trend continues into the autumn months

According to these studies, inflation continues to be a significant problem for many small businesses with 29% of small business owners reporting it’s the single most important problem in their business operation, the highest reading since the fourth quarter of 1980 .

Compounding the inflation issues caused by reduced fuel supplies and resulting increases in transportation and shipping costs, are labor issues . In the April survey 47% of small business owners reported job openings that could not be filled, and 23% indicated that labor was their top business problem Many small businesses are attempting to attract new employees by increasing wages offered, effectively resulting in an increase in minimum wages for small businesses and pushing labor cost to a 48-year high . Forty percent of small

businesses in the U .S ., including diving businesses, have unfilled openings for skilled workers:

U.S. Business Sector Companies with Unfilled Job Openings

Manufacturing

Retail

Wholesale

Services

SMALL BUSINESS OPTIMISM INDEX

The Small Business Optimism Index consists of 10 indicators derived from questions addressing small business owners: Plans to create employment; plans to make capital outlays; plans to increase inventories; expect economy to improve; expect real sales higher; current inventory; current job openings; expected credit conditions; now a good time to expand; earnings trends .

Small business optimism continues to trend downward with concerns about COVID-19, inflation, rising labor costs and continuing labor shortages . More data is available here .

OCCUPATIONAL LICENSING AND CERTIFICATIONS

As part of its Public Policy efforts, DEMA works with a coalition of associations in monitoring and commenting on legislation that impacts certification and credentialing . Certifications are at the heart of the diving industry, including professional certifications at the instructor, assistant instructor, dive master/dive control specialists, and other professional leadership level credentials . This effort is critical to the diving industry to ensure safety of the public and to maintain the integrity of the diving business; there must be assurances that instructors and those with other leadership certifications have received appropriate training and are certified to train and lead new divers and other members of the diving public .

DEMA is continuing to monitor federal and state “occupational licensing” bills which could have an impact on professional certifications in the diving industry . Certification legislation sometimes applies to state-government entities (such as licensure for state-regulated occupations) . However, many times legislation language does not clearly differentiate between private certifications (such as those issued by diver training organizations) and state-regulated certifications and licenses . DEMA follows these issues closely to help ensure that private certifications and credentials are not unnecessarily impacted by inappropriate legislative language .

These occupational licensing bills are based on model legislation originating from the Institute for Justice (IJ) and American Legislative Exchange Council (ALEC) and it is clear that there is a “movement” to create similar bills in many states beyond those currently outlined herein . ALEC is considered the conservative group that meets annually and provides drafts “model legislation” for state legislators to use . The Democratic Party version is the National

Conference of State Legislatures (NCSL), which for many more years been suggesting “model legislation ” ALEC was funded for many years by big companies such as McDonald’s, Coca-Cola, AT&T, and others, but these organizations stopped funding ALEC a few years ago . Now ALEC is funded by groups such as the Koch brothers, explaining why model legislation has recently taken a Libertarian direction, such as removing barriers to jobs by eliminating certifications.

Some state legislation being considered (or recently passed) has been written in such a way as to negatively impact the diving industry, and in a way that could pose risks to the public for some professions (including recreational diving instruction) . In some cases, language contained in these bills may not effectively separate private and state/agency-mandated certifications and licensure, potentially creating additional confusion for the diving industry .

As an active member of the Professional Certification Coalition (PCC), DEMA monitors these state bills as well as federal bills

that may impact professional certifications in our industry, and reports them as part of DEMA’s Public Policy Digest .

MANATEE DEATHS AND MITIGATION IN FLORIDA

Between December 2020 and December 2021 increased manatee mortalities were documented on the U .S . Atlantic Coast . According to scientist Gil McRae at the Florida Fish and Wildlife Commission (FWC), most manatee deaths were associated with malnutrition due to lack of seagrasses near warm-water refuge sites in the Indian River Lagoon . The total manatee mortality exceeded 1,100 .

Some sources have pointed to algae blooms and contaminants killing the seagrass manatees eat as the cause of this mortality Seagrass has been decimated in the 156-mile-long Indian River Lagoon and neighboring areas . The aquatic plant thrives in clear, sandy water, but murkier water due to algae and pollutants has made it harder for seagrass to survive During the summer months, manatees typically disperse from their warm-water habitat and during the summer of 2021 manatee deaths declined . However, many manatees remained in lower overall health due to a continued lack of forage .

FWC worked with several groups to determine if an experimental feeding effort would help . Initially the manatees did not respond to this effort, but during January 2022 some manatees were observed eating lettuce and other “experimental” food FWC’s McRae told the Fish and Wildlife Commissioners that wildlife authorities are taking special care to prevent manatees from associating humans with food . “The feed will be enclosed in floating PVC squares . It will allow us to control where the feed goes At the end of the day, typically we’d feed in the morning, assess how much of that feed has been taken . ”

During the winter months with typical manatee migratory patterns, manatee mortality remained at elevated levels along the Atlantic Coast . FWC proceeded with an emergency feeding program that gave lettuce to manatees to get them through the winter . More than 450 manatees perished during this time .

As the warmer spring months returned to Florida, FWC ended the emergency feeding program that gave lettuce to manatees to get them through the winter . During this feeding program manatees consumed more than 190,000 pounds of lettuce at a temporary response station near the power plant in Cocoa, Florida

In early April Patrick Rose, Executive Director of the Save the Manatee Club told Channel 6 News in Orlando that more than 25% of the manatees’ population on the east coast was lost in the last 15 months . Rose indicated, “That’s going to take about a decade to recover that if we do everything right . ”

DEMA urges members of the diving industry in the vicinity of manatee populations to monitor the progress of manatee recovery, and to support Florida and federal legislation that would help re-build the seagrasses and limit or eliminate the development and resulting pollution of these important nursery grounds . DEMA is encouraged by the defeat of Florida Senate Bill 198 which would have allowed further development and destruction of these important resources .

If you see a sick or injured manatee, you’re asked to call FWC at 1-888-404-3922 . You can also download the free FWC Reporter App on your smartphone or tablet

Additional information on manatee deaths in Florida can also be found at: https:// myfwc .com/research/manatee/rescuemortality-response/statistics/mortality/

GOLIATH GROUPER – FLORIDA OPENS A

“LIMITED HARVEST”

For more than 10 years DEMA successfully fought the Florida Fish and Wildlife Commission’s (FWC) attempts to reinstate harvesting the Goliath Grouper . The fishing community – with the full backing of the FWC, has advocated for opening the Goliath Grouper fishery, which would discontinue a moratorium that was put in place in 1990 to stop the decimation of Goliaths, caused by extreme overfishing . In 2022 the FWC, running counter to the best science on the subject (including from their own scientists), has re-opened the fishery for a “limited harvest” of some 200 animals per year .

DEMA fought this re-opening of the harvest for numerous environmental and business reasons . Opening the harvest, even on a limited basis, runs counter to FWC’s own assessment tools and serves no useful scientific purpose . According to FWC’s own data:

• FWC attempted to assess the Goliath Grouper population through traditional stock assessments three times (2004, 2010, and 2016), and each assessment was rejected by independent expert reviewers . The Commission’s most recent stock

assessment in 2016 was rejected by a group of independent scientists for use in Goliath Grouper stock management in federal waters, who stated that, “the results were not deemed suitable primarily because of missing information needed to generate an accurate ‘model’ of the fishery . ” Neither the Commission nor fisheries scientists have sufficient data about the life history of these fish and lack basic information about such data points as the maximum age of Goliaths, and information about the stock of Goliaths outside the southeastern U .S . FWC’s own information indicates a continuing need for further study prior to opening this species to harvest of any kind.

• In 2018 FWC adopted “alternative” methods and metrics of assessing the stocks of Goliaths These alternative metrics included:

• Long-term stability or increase for juveniles and adults by measuring the relative indices of abundance .

• Increased adult density on natural reefs .

• Increases in genetic diversity, indicating a low level of inbreeding - An increase in genetic “effective population size” for Atlantic and Gulf stocks .

• An expanded presence of fish in older age classes, tied to older, larger females which produce more eggs of higher quality and, thus, are particularly important to stock productivity and resilience .

Unfortunately, FWC’s own selfimposed metrics for recovery indicate that no significant, measurable Goliath Grouper recovery has taken place .

Mercury Content of Goliath Flesh: In addition to the fact that these FWC-adopted alternative stock assessment tools point to little or no recovery of Goliath Grouper stocks, the fact that the flesh of these fish cannot reasonably be consumed due to high levels of mercury, adds to the contention that harvesting them for food or other reasons is inappropriate .

Dive Attractions: Since the prohibition of harvesting Goliath Grouper began in 1990, these animals have become extremely popular hosts to underwater habitats and are mentioned frequently by visiting/tourist divers who greatly enjoy watching these remarkable creatures roam the ocean floor . The Goliath Grouper’s size, visibility, low birth rate and slow movement seem to trace another of Florida’s truly majestic waterborne creatures, the Manatee, a protected species that also has considerable ecotourism value . If harvesting of Goliaths is allowed without verified stock assessments and measurable recovery, we believe Goliath Grouper could easily be thrown back to species extinction .

In addition to concern regarding the stocks of these fish, DEMA also relies on the opinions of divers and dive-related businesses regarding the current harvesting status of Goliath Grouper . In DEMA’s survey of divers and dive professionals, more than 85% indicated their desire to maintain the current moratorium on harvesting the Goliath Grouper . DEMA and the diving industry continue to favor the following:

1 . Maintaining the current harvesting status of the Goliath Grouper in Florida; that is, harvest and possession should be prohibited .

2 . In addition to the current harvest moratorium, a prohibition on possession should be enacted, because, as FWC acknowledged in their April 2018 presentation, presently Goliath Grouper are uncommon-to-absent in much of their historical range outside of South Florida . Care should be taken to allow for Goliath Grouper to return to their historical habitats before any harvest – even a limited one - is considered

3 . FWC or NOAA (or another appropriate agency or scientific organization) should continue monitoring the stocks of Goliath Grouper through the traditional or alternate methods for a long enough time to obtain a genuine stock assessment of these animals . More time is needed.

4 The FWC should reject any recommendations to collect data while using a “limited harvest” of these fish . In fact, the FWC has noted in the past that such a “limited harvest” will serve no valid data collection purpose, stating; “It is important to note that any data gathered from a limited harvest will not result in accepted stock assessment” and warn that such a limited harvest raises “concerns about consumption…because of high levels of mercury in large Goliath.” A limited harvest seems to serve no useful or valid purpose, except, perhaps the possible ‘opportunity’ of harvest for a small group of fishers .

5 . FWC or NOAA (or another appropriate agency or scientific organization) should conduct additional research on the age of these creatures, such that any future assessment would have more validity .

6 . FWC should review its current regulations to determine if protections for Goliath Grouper could be implemented that are comparable to those reasonable protections afforded Manatees .

DEMA continues to monitor the “limited harvest” scheduled to begin in 2023 . Interested parties should review this short film, and consider contacting the FWC Commissioners to voice their opposition to these new harvest rules at commissioners@MyFWC .com .

CATCH AND RELEASE PROHIBITION ON GOLIATH GROUPER SPAWNING AGGREGATION SITES

DEMA participated in the July 13 Florida Fish and Wildlife Commission (FWC) rule making meeting to discuss concerns with permitting catch and release fishing of Goliath Grouper on known spawning aggregation sites . The catch and release fishery on these sites would add to the stress on this species caused by FWC opening a “limited harvest” of these vulnerable fish over objections raised by DEMA and the diving community .

FWC staff proposed allowing catch and release fishing on these spawning aggregations sites, popular among recreational divers and Florida dive businesses . FWC’s proposal, did restrict the use of handlining fishing gear because heavy handlines could be used to haul up fish from depth quickly, causing barotrauma to the fish . DEMA objected to this proposal, instead advocating for no fishing to take place on these spawning sites during the months of July 15 to October 15, when spawning is at its most active phase . DEMA Advocate Bob Harris testified in person at the FWC meeting and DEMA joined with noted scientist Lad Akins (Frost Science), Shana Phelan (Pura Vide Divers), and the Palm Beach County Diving Association to submit comments regarding the proposed catch and release rules .

In the end the FWC asked their staff to propose rules for a September review that would prohibit catch and release fishing of Goliath Grouper at three of the 11 known spawning aggregation sites . Those three sites were recommended by the diving community as an alternative because those sites

had the highest density of Goliath within state waters during the spawning season .

Unfortunately, FWC did not issue proposed regulations in September . DEMA is anxiously awaiting the December FWC meeting with hopes that these rules, as suggested by the Commissioners themselves, will be introduced at that time .

If implemented, these rules will likely go into effect in 2023, and it will be a great victory for protecting the Goliath Grouper and the dive businesses in Florida that rely on seeing this slow-moving, popular but at-risk animal Learn more here

SUMMARY

2022 has been an active year for DEMA’s Public Policy Committee and staff Public Policy has long-term impacts on international, regional, and local dive business . DEMA and the Public Policy Committee recommend that all diving businesses become involved with these important issues . ■

GO DIVE NOW MARKETING CONSUMER CAMPAIGN

Among DEMA’s goals is to engage in marketing programs that promote non-commercial diving of all kinds, create new customers, drive consumers into retail stores and resorts, and encourage customer retention . In 2016, DEMA launched the Go Dive Now consumer campaign to help in this effort . Even during the peak of the global COVID-19 pandemic, DEMA continued to provide consumer access to the GoDiveNow .com website, including member store and destination listings . Throughout 2022, DEMA has strived to increase access for Members to consumer marketing materials and support

LEADS FROM GODIVENOW.COM TO DEMA MEMBER STORES

Since January 2019, the GoDiveNow com website has incorporated lead generation functionality . The website’s Dive Store Finder and Dive Vacation Finder features help consumers locate a DEMA Member store or travel provider in the area of their interest . Results from a consumer’s search provide them with a list of qualifying businesses By clicking on a listed DEMA Member store or travel

provider link, a pop-up allows the consumer to provide their contact information so the DEMA Member business can follow up with them about their goods, services, and/or destination .

DEMA MEMBERS CAN USE GO DIVE NOW MATERIALS FOR FREE

DEMA continues to make advertising images and video templates available to DEMA Members . These materials have been produced by a professional advertising agency specifically for DEMA’s member use . Members can costeffectively produce their own advertising campaigns using these complimentary materials .

To access the FREE Go Dive Now Member Toolkit, Members should log in at DEMA .org .

GO DIVE NOW MARKETING DIGEST

NEWSLETTER

Distributed twice a month, DEMA’s Go Dive Now Marketing Digest is an email subscription providing free social media images and posts for industry use . Subscribers are encouraged to use these marketing materials to reach a targeted audience of affluent, active potential dive consumers .

New in 2022, the Go Dive Now Marketing Digest also features a short video marketing lesson presented by DEMA’s Communications Manager, Rachelle Reimers . Each marketing lesson provides subscribers with actionable tips for elevating their marketing efforts .

Both members and non-members are encouraged to subscribe to the Go Dive Now Marketing Digest . An archive of the suggested social media content and images is available online . ■

RETAILER ENGAGEMENT COMMITTEE

MERIAL CURRER, CHAIR

The role of the Retailer Engagement Committee is to explore the ways that DEMA can assist the dive retail sector and engage retailers in the process . The 2022 Retail Engagement Committee consists of individuals working with or owning retail companies from different regions . The operations also vary in size and use a diversity of dive-related vendors (manufacturers and training organizations) . Each member of this committee brings their experience and expertise to retail issues under discussion . As the primary audience for DEMA Show is retailers, retail staff and instructional staff, this Committee also contributes to the development and production of DEMA Show, especially the in-person and online professional development components of the event .

The 2022 Retailer Resource Committee includes: Robin Bostater, Kaizen Scuba; Jeff

Cinciripino, Scuba Shack Diving Services; Bill Cole, Sea Experience; Merial Currer (Chair), Patriot Scuba; Mark Dugger, Midwest School of Diving; Patrick Hammer, Dive Right In Scuba; and Rich Thomas, International Scuba .

During 2022 the Retailer Engagement Committee was responsible for the following:

• Surveying the industry to validate tasks as part of a retail assessment

• Recommending professional development topics for DEMA Show – in-person and online programs

• Preparing for Professional Development Sessions for DEMA Show 2023 –Call for education proposals .

• Reviewing benchmarking data and making recommendations for future research

RETAIL JOB ANALYSIS AND VALIDATION STUDY

Since 2020 this committee has been working to develop a validation study of the tasks retailers regularly perform . The goal of this development includes using the learned information to provide relevant professional development, online and during DEMA Show .

After developing the study in 2021, the committee worked in 2022 with the DEMA Research Committee to solicit study responses from the retail business community to this job task analysis/assessment . Now available through the DEMA Store at no charge to DEMA members, the validation study is being used to help solicit professional development providers for DEMA Show 2023

1

.

and Understanding

or Potential Retail Customers

Near the Dive Store

customer buying behaviors

attitudes in the store and online

in the retail dive store

5

6

7

8

Agreements – Buying programs

Manufacturer/Service

. Merchandise and Service Vendor Operating Procedures and Policies

standard accounting methods to determine retail inventory value

Using Retail Accounting Statements to help monitor and grow the business

Pricing in the Retail Environment

10

11

Setting Pricing based on Profit and Other Pricing Strategies

Understanding Selling in the Retail Environment

Promotional Strategy

Retail Advertising and Advertising Management

14 Internet, social media, and other marketing tools

The results of the 2022 Retail Dive Center Task Assessment can be downloaded at no cost to DEMA members here .

RECOMMENDING PROFESSIONAL DEVELOPMENT TOPICS FOR DEMA SHOW, IN-PERSON AND ONLINE PROGRAMS

Committee reviews and makes recommendations for all of DEMA’s proposed retail professional development programs . The process consists of reviewing submitted speaker/ topic proposals, which include education

outcomes and objectives, relevance to the current market, and speaker quality .

Following several retailer surveys and a review of professional development topics presented at DEMA Show previously, the Committee provided feedback on general topic headings of interest, including ranking topics by retail need . A Committee survey revealed the following areas of interest:

2022 RETAILER TOPIC PRIORITIES - RETAIL ENGAGEMENT COMMITTEE RESULTS

(OVERALL AVERAGE 3.32)

AVERAGE

How to use diver training to increase retail dive equipment sales 4 .29

Selling local diving to increase dive equipment sales 4 .14

Developing a partnership: Retailer and Equipment Sales Representative 4 .00

Creating and stocking a profitable equipment repair department 3 .57

Sales Training for retail staff 3 .57

Making the dive center environmentally friendly/”sustainable” 3 .57

Instructors: Employees or Independent Contractors? 3 .43

Forecasting merchandise sales – using “open to buy,” inventory management and more 3 .29

Attracting a younger audience to the dive center 3 .29

Considerations for operating a profitable dive equipment rental department (cost, pricing, profit) 3 .14

Post-COVID, are customers moving to buy more online, and how can dive retailers adapt to this shift? 3 .14

What do young consumers say about scuba diving? 3 .14

Creating a dive retail store floorspace layout that increases merchandise sales 3 00

What to consider when pricing dive equipment repairs and service 3 00

How to display diving equipment inside the dive retail store 2 71

Prospecting for customers in the area near a store’s location 2 57

Advertising for retail dive businesses (social media, email, print, using zip code ad campaigns) 2 57

Correctly allocating building space to achieve the best retail mix for profitability: retail dive operations: inventory storage, office space, training classroom, repair and service department, air fills, etc .

2 .57

Managing a dive retail sales force (various topics) 2 .57

Choosing a dive store business (geographic) location 2 .43

Legal Responsibilities when selling dive travel 2 .43

Working with a dive travel wholesaler 2 .43

Creating effective dive store window displays and displaying merchandise inside the store . 2 .29 The future of dive retailing post-COVID 2 .29

How have you stayed open (or re-opened) during/following COVID? 1 .57

Combined with the Retail Task Assessment, this information is utilized when selecting professional topics for DEMA Show .

DEMA Show in-person attendees that take advantage of the DEMA-Sponsored Marketing track in 2022 can gain knowledge about marketing from experts in their field Participants earn a digital badge that can be used to verify the sessions attended and completed – whether you use your badge to verify professional development participation for current or future employers or to help demonstrate your value as a volunteer or business owner .

View Full List of Badge Sessions that qualify for the digital DEMA 2022 Marketing Education badge .

The full complement of online and in-person DEMA Show DEMA-sponsored Professional Development sessions can be found here .

PREPARING FOR PROFESSIONAL DEVELOPMENT SESSIONS FOR DEMA SHOW 2023 – CALL FOR EDUCATION PROPOSALS

The Retail Engagement Committee works well in advance of presenting professional development sessions to the industry . In 2022 the Committee conducted a full review of the call for professional development speakers and determined the need to include calls for dive industry professionals as well as general topic speakers for the DEMA audience .

CALL FOR GENERAL PROFESSIONAL DEVELOPMENT SPEAKERS

DEMA Show solicits calls for professional development speaker proposals from the general retail, marketing, operations, and sales fields . These are strong programs and bring a wealth of information from outside the diving industry to the DEMA attendee audience .

While valuable, and providing a different small business perspective, the Committee determined a need for bringing in actual dive retailers to provide real-world diving retail information to the DEMA community .

CALL FOR PEER-TO-PEER PROFESSIONAL DEVELOPMENT SPEAKERS

In 2022 for the first time this committee issued a call for peer-to-peer speakers to address divespecific retail topics for the in-person DEMA Show . In addition, just in time to impact the 2023 New Orleans DEMA Show, the Committee has reviewed the information used for the 2022 solicitation and made improvements for 2023 in the way that these speakers are solicited .

If you are an accomplished dive retailer and would like to give back to the diving community through professional development sessions during DEMA Show 2023, be on the lookout early in 2023 for the call for DEMA Show speakers!

EVALUATE STORE-RELATED BUSINESS BENCHMARKS FOR ASSISTING RETAILERS

The Retail Engagement Committee continued to evaluate the need for benchmarking data for retail dive stores . Obtaining and using valid benchmarks for the dive retail business is challenging because the business varies with geographic location, offerings for travel and product sales, and size of the store .

During 2022 the Retail Engagement Committee continued their evaluation of

financial and operational ratios as benchmark measures . The available data comes from a large portfolio of sources including:

• IRS Statistics of Income

• IRS SOI Corporation Tax Book

• IRS Sole Proprietorship Tables

• US Economic Census

• US Census Quarterly Financial Reports

• US Census County Business Patterns

• Bureau of Labor Statistics Monthly Employment Reports

• Bureau of Labor Statistics Monthly Unemployment Reports

• Bureau of Labor Statistics Annual Wage Survey

• Bureau of Labor Statistics Industry Productivity Reports

• Bureau of Labor Statistics Price Indices

• Bureau of Labor Statistics Consumer Price Index

• National Agricultural Statistical Service

• US Census Retail Trade Report

• InfoGroup, Inc .

• DealStats

• American Community Survey

The Committee has recommended using diving retail financial reports to help retailers understand their company’s position relative to the financial performance of similar dive stores, in similar geographic regions The results may help operators and owners gain a better understanding of the industry in their own areas along with their own business, and these data points can become an important part of the toolkit that helps to guide management decisions This Committee will work further on this project in 2023 . ■

DEMA RESEARCH COMMITTEE

WILLIAM CLINE, CHAIR

DEMA’s research role includes providing Members with pertinent industry data that helps their businesses . Providing market and Industry research is critical for all trade associations, and DEMA views this responsibility as a central part of the association’s activities .

The 2022 Research Committee consists of DEMA Members that have interest, experience, and an understanding that market research of all kinds is needed for diving businesses to be successful Research critical for DEMA and the diving industry include DEMA Show-related topics, market related issues, customer issues and retail-related inquiries . The Research Committee includes: William Cline (Chair), Cline Group Marketing; Cal Evans, Uncle Cal’s Dive Club; Shelli Hendricks, Blue Horizons Solutions; Bob Kessler, Indiana University; Jeff Tennant, Buckeye Dive Club; and Christine Tamburri, Diver’s Alert Network .

THE NEED FOR RESEARCH

At the heart of “marketing” is the understanding of the dive customer, how to communicate with them, and knowing which message will generate the greatest response in a cost-effective manner . DEMA’s Research Committee guides several ongoing research projects for DEMA Member use . All members of the diving community can benefit from DEMA’s large-scale research information

Most everyone in the diving industry has an idea of their own customers; retailers see who walk into the store and purchases the equipment and training they sell; manufacturers have a good 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 growth . Having marketing data from all sources in the diving industry, including data from actual divers is critical, but only if it translates into marketing action that helps members . That’s where the Research Committee excels .

During 2022 the Research Committee

Workplan included:

• Reviewing the DEMA Certification Census

• Evaluate the results of the “Consumers at DEMA Show” survey

• Assisting the International Membership Committee with data collection for International Member needs

• Retail Topics Importance Evaluation for Professional Retail Development Education

• Assisting the Retail Engagement Committee with a Retail Task Analysis and Validation study

• Conduct primary Dive Consumer Behavioral Research

• Assist the Manufacturing community with development of a new Manufacturing Research Report to begin in 2023

REVIEWING THE DEMA CERTIFICATION CENSUS

Thanks to the three participating certification organizations, data on the number of new diver certifications in the U .S . and Caribbean has been readily available to the Industry each year since 2003 . The Certification Census includes data exclusively on U .S .-based Open Water-level diver certifications (as defined by the Recreational Scuba Training Council [RSTC]) . This statistic is a measure of growth for the Industry and is indicative of the health of the sport in the U .S .

All DEMA-Member training organizations are invited to participate, although not all did in 2022 . The three participating certification organizations for 2022 are NAUI, SDI/TDI and PADI .

Taken together, these organizations represent most of the Open Water-level certifications issued in the U S and Caribbean market

The cooperative effort between all participating certification organizations includes providing their certification information to an independent, thirdparty auditing firm . Open Water certification numbers are reported by the third-party administrator (TPA) to the Industry in aggregate total, only after the TPA does a thorough review of the data, removes any duplicated customer records that appear across or from within agencies, and receives written verification of the final numbers from each reporting training organization The process is designed to make the Certification Census totally anonymous regarding the new diver’s training organization affiliation and to produce an accurate accounting of the total Open Water divers from within the U S and Caribbean Neither the DEMA Office nor members of the DEMA Board have access to individual training organization totals, only the aggregate total . Upto-date certification census data is available to the Diving Industry at www dema org and important state-by-state data is available to DEMA Members .

EVALUATE THE RESULTS OF THE “CONSUMERS AT DEMA SHOW” SURVEY

In response to comments and suggestions regarding DEMA Show, in 2022 DEMA again surveyed members of the diving industry to determine whether part or all of DEMA Show should be accessible to dive consumers and the general public . DEMA Show has always been a trade-exclusive event and only open to dive professionals .

While the Association has previously conducted surveys on this subject, it is important to periodically review current trends in the marketplace, especially considering potential market changes due to the COVID-19 pandemic . DEMA issued the survey to the diving industry in late March to inquire about the industry’s

stance on admitting consumers to DEMA Show since the onset of the pandemic .

There were more than 1,000 respondents to the survey from the professional diving community The survey consisted of 13 total questions, four of which were “identifiers” to help understand who was answering, from what location, and their involvement with DEMA as a Member . Most respondents to the survey were

from DEMA Member companies, but DEMA received a substantial number of responses from both DEMA Members and non-members .

The overall results were substantially in favor of DEMA Show remaining a dive professionalsexclusive event, and that consumers should NOT be admitted to DEMA Show .

Should DEMA consider opening DEMA Show to the general public and allowing the public to enter, WITH THE GOAL OF UTILIZING THIS OPPORTUNITY TO PROMOTE RECREATIONAL DIVING?

% of Total

Uncertain

Results by stakeholder:

Should DEMA consider opening DEMA Show to the public, WITH THE GOAL OF UTILIZING THIS OPPORTUNITY TO PROMOTE RECREATIONAL DIVING?

Yes

A1:Manufacturing A2:TrainingOrganizations A3:Media,Consultants,Non-Retail A4:Retailers A5:Sellers of Dive Travel

.60%

.20%

.61% 57 .27% 15 .53% 50 .41%

.30% 30 .00% 80 .12% 45 .45%

.09% 12 .73% 4 .35% 4 .13% DEMA also included a question regarding the ability of exhibitors to sell products and services, including life support equipment, at a DEMA Show that admitted the public, should such a

.20%

during such a public event be staged - whether the public was admitted for the entire event, a day, or to a section of the trade-only show floor:

Assuming DEMA Show Was Open to the Public:

ANY exhibitor should be able to sell their products or services on the show floor to ANY member of the general public (thereby helping them reach a better return on their exhibit investment) .

NO exhibitors should be able to sell their products or services to ANY member of the general public; sales can only be made to professional travel or retail buyers through wholesale channels . This includes manufacturers, training organizations, retailers, jewelry and clothing vendors, and hotels, as well as travel sellers .

All exhibitors can promote their products for re-sale ONLY through the retail dive center, internet sales away from the Show, or other retail outlet .

None of these; DEMA Show should NOT be open to the general public

% of Total in Favor

This

survey data is

with past surveys

In fact, as the results of previous surveys confirm, the COVID-19 pandemic did

Show

the

consumers:

.14%

The Research Committee confirmed that the professional diving market is not currently in favor of opening DEMA Show to the public DEMA will continue to explore and review changes in the market regarding DEMA Show and other association activities .

ASSISTING THE INTERNATIONAL MEMBERSHIP COMMITTEE: DATA COLLECTION FOR INTERNATIONAL MEMBER NEEDS

The Research Committee reviewed and contributed to a “needs” survey to be distributed to DEMA Members and non-members, outside the U .S .

The DEMA Board has made the decision to act strategically about expanding further into the international market DEMA serves the broad international market with DEMA Show, advocacy efforts as needed, research and professional development . Being deliberate about further expansion first requires understanding the market in as many ways as possible In addition to incorporating DEMA Members from outside the U .S . on the International Membership Committee, the “needs” developed by the International Membership and Research Committees can assist in this process Results from this survey include the ranked benefits desired/needed shown in the table below .

RETAIL TOPICS IMPORTANCE EVALUATION FOR PROFESSIONAL RETAIL DEVELOPMENT EDUCATION.

The Research Committee recommended the use of a unique method of understanding the value of specific retail topics . The recommendation involved the use of a “forced choice” approach to a known list of important retail topics The forced choice incorporates a so-called rating quota, based on the number of topics in the

selection process . In this study there were 25 different topics . Divided by 5, the rating quota for 25 topics is five: that is, the number of topics that can be selected for a highest (and lowest) rating is limited to the rating quota of five topics (there must be five 5s, five 4s, five 3s, five 2s and five 1s) . Topic scores provided by the Committee members using the rating quota system were averaged to develop the “Importance” score shown in the table below .

DIVE MARKET RESEARCH: U.S. AND INTERNATIONAL DIVER BEHAVIORAL STUDY

In September 2022, the DEMA Research Committee launched an updated diver behavioral survey, asking the industry to participate in gathering data from their customers to get a better understanding of any changes taking place in the market, post-pandemic .

This latest iteration of the Diver Behavioral Study is an updated version of the survey last used in 2020 . The 2020 Study yielded more than 9,700 responses from more than 130 countries . That survey remains great benchmarking data, covering diver behavior in such areas as dive travel, local diving, equipment purchases and diver training, all PRIOR to the pandemic Survey results are at no cost to Members at www .DEMA .org .

In the 2022 study DEMA-Member companies are being asked again to assist by contacting their own customers with a customized web survey link tied back to their own company . At this writing surveys are being distributed and collected by a third-party administrator (TPA), and the Member company’s survey responses will again be provided to the Member for review . So, while the aggregate data from all participating Members is compiled and reported to the industry by the TPA, the individual DEMAMember company receives responses from their own customers, allowing them to compare their customer’s data to the Industry-wide aggregate . DEMA anticipates that the results of this latest Diver Behavioral Study will be published in early 2023 .

DEVELOPMENT OF A NEW MANUFACTURING RESEARCH REPORT

DEMA currently has no business indicator for the manufacturing sector . The Research Committee and Manufacturing Committee are seeking a new method of collecting trend data for the manufacturing sector . The methodology suggested is identical to that used by the Institute for Supply Management (ISM) which is commonly cited and utilized within the U .S . general manufacturing sector and investment

community . This methodology will replace the previous “Manufacturing Sales Index” (MSI), which included reporting international and domestic sales details Instead of the Sales Index, the Committees are proposing the use of a “Manufacturing Purchase Index” (MPI) which does not require reporting specific sales numbers . The MPI provides a leading indicator to understand more fully the state of orders and inventories from diving’s manufacturing sector .

BACKGROUND

In the United States the Institute for Supply Management (ISM) began using a “Purchasing Manager’s Index” (PMI) in 1948 to assist in understanding data for the manufacturing sector . The PMI is used extensively today by the U .S .

venture capital and business communities seeking to invest in U .S . manufacturing companies . The published data from ISM is about PAST orders and other activities but is also used as a means of predicting broader economic issues . Even though the data is for past orders, inventories and other figures, the PMI acts as a leading indicator of manufacturing output that predicts economic recession or expansion of industries .

The PMI is a simple measurement tool; companies can report whether specific aspects of the manufacturing business are increasing, deceasing, or have remained unchanged during a given period . In effect this is a “trend analysis . ”

While PMI gathers data from a long list of categories within the traditional manufacturing sector . DEMA recommends that Dive Manufacturers report an abbreviated dataset, limiting the requested dive manufacturing data to quarterly reporting in the following areas:

• New Orders: reflects the levels of new orders from customers .

• Inventories: reflects the increases and/ or decreases in inventory levels .

WHY IS THIS IMPORTANT TO THE DIVING INDUSTRY?

This manufacturing data can assist with critical decision making for ALL parts of the diving industry and can be used in conjunction with data on certifications as well as on other customer data . It is PAST data but can help with trends . For example:

Hard goods manufacturers and suppliers:

• A regulator manufacturer makes production decisions based on the new future orders it expects from retailers . Those new regulator orders drive management’s purchasing decisions about dozens of component parts such as high-or low-pressure seats/ poppets, hoses, and orings . Existing

inventory balances also drive the amount of production the manufacturer needs to complete new orders and to keep some inventory on hand at the end of the month .

• Parts Suppliers may also make decisions based on this important data . A parts supplier for a regulator manufacturer follows the data to estimate the amount of future demand for its products, including raw materials such as plastic or rubber . Parts suppliers may also be interested in seeing an index on inventory, which affects the amount of production its manufacturing clients must generate .

• Proposed MPI information about supply and demand affects planning for manufacturing budgets, managing staffing levels, and forecasting cash flow .

Other members of the diving industry can also benefit from this important data:

• Retailers can use this data as it reflects product availability (especially soft goods) for new customers learning to dive .

• The data can be used by certification organizations as an indicator of trends in purchasing . Divers that obtain continuing diver education also tend to purchase more equipment .

• Divers with additional education also tend to travel to dive, which can assist with both liveaboard and landbased dive resort forecasting .

• This data is also important for current retailers seeking to expand and informs and encourages new business growth for all retailers: brick and mortar and online .

• All members of the diving industry benefit because DEMA has data that can be utilized to help legislatures better understand the

diving industry. The diving community CANNOT easily discuss or change detrimental laws without being able to discuss the current status of manufacturing and other research-based statistics.

DEMA will gather data quarterly using two data points for equipment as defined below:

• As compared to the previous quarter .

• As compared to the same quarter in the previous year

For example, when reporting whether orders are up, the same or down, the comparison for Q1 2023 will be made first with Q4 of 2022, then with Q1 for 2022 In this way the data will reflect the changes per quarter DURING the year, as well as changes from the same time in the previous year . Combined, these figures help the user understand the seasonality of the dive manufacturing business and how it impacts the reporting companies

All data is reported to a third-party administrator (TPA) under contract with DEMA to maintain anonymity of the data with respect to each reporting company . Only aggregated data is reported to the industry . Neither DEMA nor any individual company sees any individual company’s data . Once committed, DEMA will ask that the company continue to report the selected categories for each quarter for the calendar year and provide rewards for participation as described below .

With current labor shortages and shipping issues continuing in this and other sectors, reducing reporting categories to essentials that help predict the health of the manufacturing sector may prove a more successful data collection strategy than requesting detailed numbers monthly .

HOW IS THE INDEX CALCULATED?

Using the same approach as the traditional Purchasing Manager’s Index (PMI) the DEMA MPI is calculated as follows: MPI = (P1 * 1) + (P2 * 0 .5) + (P3 * 0), Where:

P1 = percentage of answers reporting an improvement

P2 = percentage of answers reporting no change

P3 = percentage of answers reporting a deterioration

The proposed MPI is a percentage from 0 to 100 and is reported quarterly . An MPI above 50 percent indicates an expansion of new orders or inventories, as compared with the previous quarter . An MPI reading under 50 percent indicates a contraction, and a reading at 50 percent indicates no change . The further from 50 percent (in either direction) the greater the level of change has occurred in the reporting period

Example:

Assumes 10 Manufacturers report quarterly to MPI, in the Category of REGULATORS .

6 report an increase in new orders of regulators (P1)

2 report no change from last quarter in new orders of regulators (P2)

2 report a decrease in new orders of regulators (P3)

Solution: MPI = (P1 * 1) + (P2 * 0 .5) + (P3 * 0)

MPI = (60% *1) + (20%* .5) + (20%*0) = 70% .

Since this MPI is above 50% for the quarter, it indicates a net positive quarterly growth for new orders of regulators from the reporting Manufacturers .

Once aggregated by the TPA, data would be available to the industry in table format .

IMPLEMENTATION

DEMA obtained manufacturing data for more than 30 years using various iterations of the Manufacturing Sales Index (MSI) . In the instance of MPI, DEMA will use a series of incentives to help gather the data in a timely manner .

SENIORITY POINTS INCENTIVE PROGRAM

As with DEMA’s other census reporting projects, DEMA proposes awarding DEMA Show seniority space selection points to those manufacturers consistently reporting to the MPI each quarter .

Based on input from manufacturing companies and past experiences in collecting information, companies will be able to report based on several categories of equipment including soft goods,

exposure protection, accessories, and hard goods, such as regulators and computers . Companies can choose to report in one or more, or all categories and earn incentives accordingly .

DEFINITIONS OF EQUIPMENT TO BE REPORTED:

Category Equipment Type Definitions

Soft Goods Masks

All styles of scuba masks . Excludes swim masks and goggles without nose pocket

Fins – All Paddle blade, Split blade, full foot, heel strap, other configurations

Snorkels Any style

Snorkel Sets Sets including at least a mask and snorkel

Exposure Protection Wetsuits

One-piece, two-piece, separate jackets . Excludes hooded vests

Drysuits Any style

Booties, Gloves & Hoods

For use with wetsuits and any units designed for drysuit use . Includes hooded vests .

Hard Goods Regulators Includes 1st and 2nd stage sets, Octopus or Alternate Air Sources and breathable inflators not attached to BCs .

BCs – All All except technical diving wings and plates . Includes snorkeling vests . Technicalrelated Side-mount harnesses, tec “wings” and tec back plates

Computers All – wrist, hose/console mount

Analog Gauges Depth and pressure Excludes watches and timing devices

Accessories and Bags

Accessories Clips, anti-fog, fin straps, mask straps, dive flags, tools, reels, mouthpieces, logbooks, slates, etc . Bags All dive gear bags, rucksacks, backpacks, dive-related, mask or other accessory bags

DATA AVAILABILITY

As proposed, data will be available to members in various ways, including for those participating and those not participating . As required by law, data will also be made available to non-members at non-member pricing .

No equipment-intensive recreation operates long without having access to manufacturing data

It should be obvious that this information is critical to growing the industry . DEMA and the Research and Manufacturing Committees look forward to implementing this program for 2023 . ■

INTERNATIONAL MEMBERSHIP COMMITTEE

DEMA’s Mission is “Bringing businesses together to grow the Diving Industry worldwide . ” In 2021, with aspirations to better serve the diving industry worldwide, DEMA evaluated the association’s international diving industry presence to determine if a strategy to expand the association’s international growth was appropriate .

That same year, DEMA formed a volunteer Committee consisting of Terry Cummins, Terry Cummins International Business Consulting; Craig Lees, Suunto; Dan Orr, Dan Orr Consulting; Peter Symes, X-Ray Dive Magazine; and Steve Weaver, Weaver Dive and Travel Most members of the Committee remained on this task in 2022 as well, with Craig Lees departing due to a change in employers .

The International Membership Committee’s goals include increasing the number of international members and, importantly, increasing member engagement internationally .

Any analysis of this effort begins with looking at DEMA’s current position in the international market . The following are part of the Committee’s current review:

• DEMA’s international membership is about 20% of overall membership .

• DEMA Show exhibitors consist of about 25% international companies .

• Many current U .S .-based DEMA Show exhibitors are highly interested in selling to international attendees .

• Many international members purchase DEMA’s U .S . dive industry research, but many more attend or exhibit at DEMA Show .

• Many international members are interested in gaining a foothold in the U .S . market .

• With international travel restrictions during COVID, international attendee numbers at DEMA Show 2021 were reduced . Some U .S .-based companies opted not to exhibit at DEMA Show 2021 because of the reduced international attendee numbers .

DEMA currently offers a variety of benefits, some of which are important to international members:

• Professional Development, including marketing, sales, and operational education .

• Research on the U .S . and international market .

• Public Policy efforts that occur in the U .S . and elsewhere, and which impact the industry as a whole .

• Promotional and marketing services and products that can be used anywhere in the world .

• Sponsorships that provide business exposure to the U .S . and international market .

• DEMA Show – connecting with the U .S . dive market as buyers and sellers .

• Engagement and Networking (Committees, Board, Research Opportunities, DEMA Awards and Exhibitor Parties, and DEMA Show itself) .

DEMA’s data indicates that, up to now, the international dive community has been mostly interested in the benefits of attending and exhibiting during DEMA Show . Other benefits also exist, and some international members remain unaware of these additional benefits . Part of this Committee’s work will be to determine how to help engage more international diving companies, and how to better communicate with this important segment of the industry .

In late 2021, the Committee reached out to Members to discuss how best to support the

international effort and additional Member recruitment . A survey describing DEMA’s current benefits and how these benefits meet the needs of international members was sent to the industry outside the U .S . The highest rated benefits included:

1 Demonstrating the value of recreational diving to the general public .

2

3

4

. Obtaining member discounts to attend the exhibit floor at DEMA Show

. Opportunities to network with other professionals .

Working with international standards organizations .

5

. Obtaining access to consumer research .

• Most respondents traditionally either exhibited at, or attended, DEMA Show .

• Most operators that responded have been in business for more than 15 years .

• Most respondents have been DEMA members for more than 15 years .

• Most did not belong to other dive-related trade associations .

During 2022, this Committee helped to develop data points and practical methods to increase international member engagement:

• Key Performance Indicators: Participation with DEMA Show, Volunteering, Association Participation and DEMA Membership .

• A measurement system to determine the level of engagement for each member . Additionally, this Committee reviewed staff proposals for an engagement reward system .

The International Membership Committee will continue in 2023 to help achieve the goal of increasing international membership . ■

2022 DIVING COMMUNITY CHAMPION AWARDS

CELEBRATING DEMA MEMBERS THAT UPLIFT THEIR COMMUNITY THROUGH UNIQUE DIVING PROGRAMS

The Diving Equipment and Marketing Association is eager to recognize DEMA-member companies that utilize their recreational diving businesses and positions in the community to make a difference locally or on a wider scale . DEMA has created the Diving Community Champions Award for this purpose .

The Platinum, Gold and Silver Diving Community Champion Awards are provided to the top three DEMA-member companies as voted by the DEMA membership . The Awards are presented each year at DEMA Show and help generate public interest in recreational diving by demonstrating that diving can make a difference to communities everywhere . DEMA-member companies from all stakeholder groups have been engaging with others to help one another locally or even

globally, using a variety of activities and we are honored to recognize these efforts! Whether it has been conducting a program to help clean local beaches or a nearby dive site or helping wounded military veterans to engage in recreational diving for its mental and physical therapeutic value, DEMA is excited to recognize the best and most active members for their actions!

DEMA congratulates the 2022 Diving Community Champion Award recipients:

• Platinum Winner: Women Divers Hall of Fame | www .wdhof .org

• Gold Winner: The Center for Oceanic Awareness, Research, and Education | www .coare .org

• Silver Winner: Dive Pirates Foundation | www .divepirates .org

2022 WAVE MAKERS AWARD

RECOGNIZING NEW DIVE INDUSTRY

PROFESSIONALS MAKING A DIFFERENCE

The Wave Makers Award aims to recognize professionals who have been working in the industry for five years or less and have made a significant contribution to the industry during that time .

Wave Makers are employees or owners of DEMAMember businesses who have been involved as a professional in the Diving Industry for 60 months or less and who should be recognized for their contributions to the industry, a dive business and DEMA . Nominations must be submitted by someone in a current DEMA member company (self-nominations are not accepted) . Member professionals who have been active with DEMA by attending DEMA Show, serving on a committee or task force, or other activities related to DEMA, can qualify .

DEMA congratulates the 2022 Wave Makers Award finalists:

• Sky Moore, Capt . Slate’s Scuba Adventures

• Julia Scheuermann, Emerald Coast Scuba

• Christine Tamburri, Divers Alert Network

The 2022 Wave Makers Award recipient will be announced at the DEMA Member Update and Annual Meeting taking place on Wednesday, November 2nd at 8:30 a .m . in room S210AB at DEMA Show 2022 . ■

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