DEMA 2017 Annual Report

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BRINGING BUSINESSES TOGETHER TO GROW THE DIVING INDUSTRY WORLDWIDE

DIVING EQUIPMENT & MARKETING ASSOCIATION

ANNUAL REPORT



Table of Contents What is DEMA? ....................................................................................................................................................................... 4 DEMA Consumer Marketing Committee: Kristin Valette, Chair ............................................................................................. 7 2017 Finance Committee: Mike Hollis (Board Treasurer), Chair .......................................................................................... 11 2017 Manufacturers’ Committee: Mike Hollis, Chair ........................................................................................................... 13 DEMA Awards Committee: Patrick Hammer, Chair .............................................................................................................. 14 Public Policy Committee: Dan Orr, Chair .............................................................................................................................. 17 Retailer Resource Committee: Davis Graham, Chair ............................................................................................................ 24 DEMA Show Committee: Jenny Collister, Chair .................................................................................................................... 26

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What is DEMA? The Diving Equipment and Marketing Association is a non-profit trade association. The association’s activities are funded by monies earned through the Industry’s participation in the annual DEMA Show, sponsorships, and from DEMA membership dues. DEMA channels proceeds earned BACK INTO the Diving Industry including market and industry research, handling legislative and legal issues impacting the Industry, disaster assistance, marketing and PR programs, and other Industry efforts, all for the benefit of DEMA Members. Business and trade associations perform several functions. DEMA, as a trade association, provides value to its members by seeking out ways to collaborate with Members and the Industry and through business outreach. DEMA promotes recreational scuba diving and snorkeling through PR activities, delivers educational programs for members and consumers, lobbies on behalf of the Diving Industry, and performs many other functions. DEMA is a 501(c)(6) California Corporation.

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

DEMA’s Mission Bringing businesses together to grow the Diving Industry worldwide.

Strategic Goals 1. Build a community among DEMA Members with a culture and environment that will produce valued relationships. 2. Create worthwhile opportunities for DEMA Members to share and exchange information and knowledge. 3. Provide learning opportunities that are responsive to DEMA Member needs and relevant to the changing dynamics of the Diving Industry. 4. Be on 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

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Tactical Goals: 1. Produce an annual trade event for the Industry which serves the needs of its stakeholders and produces a successful financial outcome for the association. 2. Engage in marketing programs which promote non-commercial diving of all 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: a. Define the universe of divers. b. Determine the rate of erosion among existing divers. c. Determine the number of entry level scuba certifications which take place in the United States and Caribbean each year. d. Seek opportunities to obtain global data on diver certification and participation. e. Provide retail operational data. 5. Engage in activities which promote the health of aquatic resources while protecting diver access to those resources.

Committees: DEMA Committees are an opportunity for qualified DEMA-Member volunteers to participate in the activities of the Association and to have an impact on its effectiveness. They are made up of 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. 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 non-profit 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.

2017 Committee Members Consumer Marketing Committee Kristin Valette, Chair Stefanie Cash* William Cline Derrick Crotts* Mike Hollis Doug McNeese* Jenna Meistrell Tim Webb Finance Committee Mike Hollis, Chair Tim Webb

Public Policy Committee Dan Orr, Chair Stuart Cove Dallas Edmiston Mike Hollis Al Hornsby* Jeff Nadler* Randy Pulliam* Carlos Santana* William Ziefle*

DEMA Show Committee Jenny Collister,* Chair William Cline Linda Sue Dingel* Dallas Edmiston Theresa Kaplan* Neal Watson*

Awards Committee Patrick Hammer, Chair William Cline Stuart Cove Dallas Edmiston Jenna Meistrell Dan Orr

Manufacturers’ Committee Mike Hollis, Chair Jenna Meistrell

Board Nominations Committee Dan Orr, Chair William Cline Stuart Cove Dallas Edmiston Myra Kurn Retailer Resource Committee Davis Graham, Chair* William Cline Patrick Hammer Floyd Holcom* Myra Kurn Sid Stovall* Scott Taylor* Mark Young*

Research Committee William Cline, Chair Dallas Edmiston Mark Young* Kristin Valette

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DEMA's Board Committees are generally determined at the first meeting of the year using an application process. DEMA member companies with an interest in serving on future committees please contact membership@dema.org.

The 2017 DEMA Board of Directors A1-Manufacturing Mike Hollis, Pelagic (Treasurer & Secretary) Jenna Meistrell, Body Glove

A2-Training Organizations Dallas Edmiston, NAUI Kristin Valette, PADI

A3-Media, Consulting & Non-Retail Services William Cline, Cline Group (Vice Chair) Dan Orr, Dan Orr Consulting (Senior Vice Chair)

A-4, Retailing Patrick Hammer, Scuba Emporium Myra Kurn, Ocean Enterprises

A-5, Dive Travel, Liveaboards Stuart Cove, Stuart Cove Diving Tim Webb, Caradonna Dive Adventures (Chair)

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DEMA Consumer Marketing Committee: Kristin Valette, Chair The Go Dive Now Campaign Among DEMA’s primary goals is to develop valuable marketing tools which DEMA Members can use to acquire new customers and encourage previous customers to return to diving. DEMA also seeks to engage consumers directly and drive them into Member businesses. Using data gathered by the DEMA Research Committee in 2014 and 2015, which included input directly from DEMA Members at the 2015 DEMA Show, the Consumer Marketing Committee developed the Go Dive Now campaign to promote recreational diving by using pay-per-click advertising and advertising on social media sources such as Facebook, Instagram and YouTube. DEMA launched the Go Dive Now advertising campaign and website on May 24th! The DEMA Consumer Marketing Committee consists of individuals from the DEMA Board of Directors and from the DEMA Membership. For 2016 the DEMA Consumer Marketing Committee included, William Cline (Cline Group Advertising), Stuart Cove (Stuart Cove’s Diving); Scott Daley (Body Glove); Doug McNeese (SSI); Kristin Valette, Chair (PADI); Laura Walker (Bonnier), and DEMA Staff members Nicole Russell, VP of Operations & Tom Ingram, President and CEO. The Go Dive Now campaign is now in full swing and has generated substantial attention from potential diving consumers. Here is a sampling of the analytics as of the beginning of October, 2016 (about 120 days into the campaign). As of the beginning of October • Website Sessions: 106,321 • Dive Store Finder Completions: 33,409 • Unique Website Users: 61,920 • Dive Vacation Finder Completions: 1,060 That’s more than 270 DIVE STORE FINDER COMPLETIONS PER DAY by potential diving customers since the campaign launched! Social media is producing the most traffic to the Dive Store Finder (“Dive Store Finder Completions” are defined as clicking through to locate a dive store). On Facebook alone there have been more than 2.5million consumer views. YouTube videos are also receiving substantial attention with many of the views the result of YouTube advertising. As of October 20, the videos have been seen by thousands of potential consumers: • • •

“Experience the Lifestyle” – Video was uploaded on May 25 and has received over 12,000 views. “Learn How to Dive” video was uploaded on June 30th and has received over 136,000 views “Dive into a Bigger World” video was uploaded on August 10th and has received over 61,000 VIEWS

Who is DEMA Targeting? Critical to this campaign is the need to target a consumer that will become a certified diver, buy equipment, buy dive travel and liveaboard boat trips, dive locally and return to the retailer for continuing diver education.

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To understand this very active diver, DEMA first looked at the demographics and life stage data of more than 470,000 current active divers, then reached out to more than 20,000 additional dive consumers for “behavioral” information. The result was a more complete understanding of “who” divers are, where they live, their family and household situations and their diving activities. Armed with this incredible data set, DEMA determined that the most productive promotional approach was to reach households like those already purchasing equipment, dive travel, local diving and certifications. This household targeting approach is somewhat different than perhaps has been used in the past. Recognizing that the dive retailer, and indeed the entire Industry, needs to have access to consumers who are willing to fully engage in the sport (buying equipment, diving locally, traveling to dive and purchasing diver certifications), and understanding that there is also a need to find a younger audience of potential divers, approaching households that look like the ones with currently active divers gives the Industry access to families, including young people in their teens, and affluent adults with time and money to spend and a willingness to get their kids and grandkids involved in diving. These so-called “lookalike” households are the key to growing the Industry in a manner that benefits all stakeholders. The data points indicate that there are multiple target household types. While these households are similar in some respects, there are also substantive differences, making it possible for DEMA and DEMA Members to select from a variety of targets, choosing households that provide the greatest return on promotional investments, and selecting appropriate neighborhoods near DEMA Member dive centers. Profiles of the three target households recommended by the DEMA Research Committee can be found here: http://www.dema.org/resource/resmgr/Documents/Recommended_Target_Household.pdf Targeting using the marketing information system AnySite, and the predictive data points that help identify these “lookalike” households, DEMA can reach a wide audience effectively while containing costs. Using social media advertising to reach these households also reduces costs, made even more effective because social media sites like Facebook also use AnySite and the segmentation software Personicx for their audience insights targeting data.

How Does DEMA Locate Target Households? One of the great advantages of DEMA’s methodology is that the greatest concentrations of target households can be located by postal code, using data from the AnySite/Personicx marketing information system. To reach a non-diving audience and drive them into those Member stores, DEMA advertises Go Dive Now on Facebook, Instagram and YouTube, using as a basis for the ad location the address of each DEMA Member retail store. DEMA utilizes the Go Dive Now campaign materials and the zip code locations of the target households from the AnySite/Personicx database system, and plugs these into social media advertising. As consumers click on Go Dive Now ads, they are taken to the Retail Store Finder where DEMA-member stores are listed in first-priority/proximity order. In effect, this means that the Go Dive Now campaign drives consumers directly into DEMA Member stores. To implement the advertising effort, DEMA conducted the necessary analysis of each Member retail dive center address and located the target clusters nearby using AnySite/Personicx. A custom report developed with Pitney Bowes, the database manufacturer, reaches out using a drive-time from each store address and reveals the target cluster household locations by zip code.

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Zip Code 15001 15017 15044 15090 15102 15106 15108 15116 15143 15205 15215 15216 15217 15227 15228 15234 15237 15241 15243 15317 16046 16066 TOTAL AVERAGE

Cluster 02 HHs

Cluster 07 HHs

Cluster 17 HHs

41 168 812 1,449 122 89 384 86 1,104 86 413 72 921 3 454 101 673 1,121 312 865 331 264 9,871

618 181 484 257 675 150 656 268 286 138 136 177 163 192 313 155 644 319 237 574 466 1,127 8,216

619 403 530 132 1,064 492 1,031 566 251 588 228 534 343 958 372 478 1,128 242 325 728 272 625 11,909

Total GoDiveNow HHs in Zip Code 1,278 752 1,826 1,838 1,861 731 2,071 920 1,641 812 777 783 1,427 1,153 1,139 734 2,445 1,682 874 2,167 1,069 2,016 29,996

2016 Total Households 13,712 7,262 10,251 8,401 12,229 9,143 17,341 5,994 8,395 10,561 5,671 10,915 11,930 12,607 7,163 6,629 17,995 7,877 5,653 15,440 5,717 10,924 221,810

Percent of GoDiveNow HHs 9.3% 10.4% 17.8% 21.9% 15.2% 8.0% 11.9% 15.3% 19.5% 7.7% 13.7% 7.2% 12.0% 9.1% 15.9% 11.1% 13.6% 21.4% 15.5% 14.0% 18.7% 18.5%

2016 Total Population 32,169 15,900 27,393 22,692 29,474 19,036 41,265 14,563 20,718 22,306 12,512 23,425 26,757 28,470 16,855 14,537 41,752 20,699 13,206 37,990 14,900 29,747 526,366

2016 Per Capita Income $28,720 $45,656 $43,726 $56,198 $35,920 $33,937 $36,600 $36,828 $46,807 $33,989 $45,154 $33,365 $45,112 $28,048 $42,744 $34,743 $41,566 $45,917 $41,344 $37,270 $49,498 $44,880 $40,365

While conducting the analyses, drive times around each store varied but most were conducted using a 30-minute drive. DEMA’s previous research has indicated that about 95% of the customers from most stores live within this 30-minute drive area. The drive time range can change when there are more or fewer stores in the area, and when there are larger populations nearby the store. In no case did the drive used for the analysis fall below 15 minutes or exceed 60 minutes. In areas where the population was sparse, the analysis was extended to include at least 100,000 households or 60 minutes, whichever came first. To maximize the use of limited resources, the number of target households in each zip code was also reviewed and those zip code areas that contained zero target households were removed from the final data charts. In addition, using per capita income as a proxy for affluence in the zip code area, a comparison was made of the average per capita income with the number of target households in each zip code. Using a statistical decision-making tool, only those zip codes with the best overall household-per capita income scores were retained for advertising purposes. An additional benefit of using this decision-making tool is that DEMA can provide this information to each Member retailer, including the zip codes which attain the highest “scores� (shown in the above chart in yellow highlight). Should they choose to do so, these are good prospect locations for the retailer to conduct their own social media advertising campaigns.

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DEMA Members Use Go Dive Now Materials for Free All DEMA Members are invited to conduct their own campaigns, tagging onto the Go Dive Now brand for their own stores, and taking advantage of the national attention the campaign has already generated. In fact, for Go Dive Now to be truly successful, businesses within the Diving Industry must act as “multipliers” of the brand. Without this the funds for advertising will eventually run out without achieving the campaign’s goal of increasing the number of new divers. Using social media to advertise is helpful in that it is relatively inexpensive as an advertising vehicle, and DEMA has free social media and video resources which can be used to directly benefit Member retailers to help them act in this multiplier capacity. The Go Dive Now ad campaign has already proven successful in driving consumers to the Dive Store Finder on the website. The Consumer Marketing Committee invites questions and suggestions to help DEMA Members use the Go Dive Now campaign tools and data to help their own efforts drive consumers to the store’s website. Go Dive Now is already drawing significant consumer attention and using it and the Go Dive Now brand could make a difference in your business’ ability to reach an affluent audience with a desire to become a diver.

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2017 Finance Committee: Mike Hollis (Board Treasurer), Chair The Finance Committee provides oversight to all budgetary activities of the Association, approves the budget for the fiscal year, and reviews all Association 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 annual audits of all financial activities of the Association, as well as periodic evaluations of financial data. The association’s audited financials are posted 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 carefully placed money into successful promotions and other business-related 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 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: 1. Projects are under direct control of DEMA Board 2. Project costs can be more easily evaluated and controlled 3. Project success can be more easily and accurately measured 4. Compliance with anti-trust regulations can be more easily monitored 5. Compliance with association objectives and corporate standards can be more easily monitored 6. 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 should be considered: 1. Projects are NOT under direct control of DEMA Board or staff. For this reason, additional information is required before approval of funding. 2. DEMA sets limits on funding to prevent cost overruns and expects periodic reports from the project management team. 3. Clear objectives and evaluation measures must be provided by the team managing the project prior to funding. 4. 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.

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5. Project proposals are reviewed by DEMA counsel prior to approval. 6. DEMA must be indemnified against losses, injuries, violations of anti-trust regulations and laws, and other issues appropriate to the project in question. 7. Projects must DIRECTLY benefit the diving industry overall. 8. Consideration should be given to DEMA member companies when appropriate. 9. Adequate liability insurance naming DEMA, staff and directors is required and should be incorporated into any funding agreement as appropriate. 10. 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. Pursuant to the Bylaws of the Diving Equipment and Marketing Association (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 Audited 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. Audited 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 3750 Convoy Street Suite 310, San Diego, CA 92111. In 2017, 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 2017, DEMA paid no loans, guaranties, indemnifications, or advances to any officer or director of DEMA.

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2017 Manufacturers’ Committee: Mike Hollis, Chair The Manufacturers’ Committee represents all member manufacturers. Representatives on the Manufacturers’ Committee come from the DEMA Board and can also include non-Board members. The Manufacturers’ Committee monitors and allocates monies from the Manufacturers’ 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 Manufacturers’ Committee has been supportive of many different initiatives over the years.

Helping Fund Promotions for the Industry The Manufacturers’ Fund allocated $298,000 in promotions for the industry during 2017. Programs supported include: $200,000 $ 45,000 $ 40,000 $ 10,000 $ 3,000

Go Dive Now Consumer Marketing Campaign Retail Retention & Research Go Dive Now Pool Tour Strategic Planning Meetings Manufacturing Sales Index (MSI)

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DEMA Awards Committee: Patrick Hammer, Chair Annually, the Diving Equipment and Marketing Association (DEMA) recognizes outstanding contributions by members of the diving industry and the association. The role of the DEMA Awards Committee is to use the criteria approved by the DEMA Board of Directors to recommend the best Honorees to receive DEMA’s annual awards. The 2017 Awards Committee included: Patrick Hammer, Chair, (DEMA Board, Reaching Out Award Honoree, 2014), William Cline (DEMA Board), Stuart Cove (DEMA Board, Reaching Out Award Honoree, 2013), Dallas Edmiston (DEMA Board), Jenna Meistrell (DEMA Board), Dan Orr (DEMA Board, Reaching Out Award Honoree, 2012). DEMA’s annual awards include:

The DEMA Reaching Out Award: Annually, DEMA honors two members of the professional diving community with the DEMA Reaching Out Award. The Award recognizes those who have made a “significant contribution” to recreational diving and snorkeling and who have achieved other criteria as outlined. The Reaching Out Award requires that the individual be a professional in the diving industry for a minimum of ten years before they are eligible for consideration. The Reaching Out Award is, in some ways, analogous to a “Lifetime Achievement” Award. The Reaching Out Award was first presented in 1989. Since its inception, the intent of the Award has been to recognize individuals who have made a significant contribution to the sport of diving by “reaching out” in some special way to improve recreational diving for everyone. There are many ways to reach out and do something extraordinary for the sport. Many who have been recognized in the past were pioneers who helped develop techniques related to their special areas of expertise. Their contributions have been made in such areas as photography, training, equipment design, publishing, travel, retailing, water safety, exploration and science. The Reaching Out Award has become more than recognition of individual achievements; it has become the industry’s HALL OF FAME. Those so recognized are the leaders and heroes of our sport, making diving what it is today. Some may have greater name recognition than others, but each, in their own way, is as important to the development of diving as any other. To become a member of the DEMA Hall of Fame is an extraordinary achievement and is available only to those who truly deserve to be recognized for their outstanding efforts and contribution to the sport. There are many individuals whose work goes unnoticed and unheralded. DEMA hopes to recognize all those who have made a significant contribution to recreational diving. View DEMA's Hall of Fame - A History of Reaching Out Award Recipients

The DEMA Wave Makers Award – Recognizing New Professionals in the Diving Industry: Wave Makers are at the other end of the spectrum from the Reaching Out Award; the Wave Makers Award recognizes new professionals in the industry when they go above and beyond the norm in their industry efforts to improve the diving industry by working with DEMA, other DEMA Members, and members of the diving community. Reserved for those who own or are employed by a DEMA Member Company, eligible members of the industry must be new to the profession (professionals for 60 months or less) and must have contributed to the industry, diving community and the association, with service, commitment to DEMA’s Mission and more. 14


The Wave Makers Award is viewed as recognition for an individual having made an impact on the industry early in their career. Data indicates this most often coincides with the individual being younger, but those new to the profession, regardless of age, are also eligible for recognition. One Wave Makers Award is given each year by DEMA. The Wave Makers Award criteria were developed with the following considerations in mind: 1. Emphasizing DEMA’s mission 2. Encouraging individuals early in their career to assume leadership roles. 3. Bringing more new professionals into the diving industry. 4. Encouraging new professionals to join and engage with DEMA. 5. Recognizing those new professionals who have made an impact early on, to inspire other new diving professionals to join DEMA and take on leadership roles in the association and industry. There are three categories of Wave Makers Awards, and Members may be nominated in one of these categories. • Mission Award • Industry Service Award • Industry Growth Award Mission Award: Contributions to DEMA’s Mission. In addition to owning or being employed by a DEMA Member business (Class A), nominees are eligible in the DEMA Mission Category based on: • Level and amount of volunteer contribution to DEMA • Extent to which nominee’s activities helped grow the membership base of DEMA and the diving industry in a demonstrable way. • The extent to which nominee’s activities developed and increased community awareness of DEMA programs, services and activities. • Development or effort of the individual in a leadership role with DEMA and/or the industry. • The extent to which the individual connected two or more businesses in a manner that created a “collaborative advantage” for members of the diving industry Service Award: Providing business and community service In addition to owning or being employed by a DEMA member business and contributing/engaging with DEMA as stated above, to be eligible for the Service Award, nominees should have accomplished at least one of the following: • Significant achievements on behalf of the employing/owned (diving-related) organization. • Significant service and leadership in diving-related endeavors • Significant service in professional, civic or charitable organizations related to the diving industry. Industry Growth: Participation in Educational Content, Growing the Industry: In addition to owning or being employed by a DEMA Class A Member business and contributing to/engaging DEMA in a manner as described above, eligible nominees should have: • Confirmed participation in business or service educational programs that further advance the individual in the recreational diving industry. These education programs need not be diving-industry specific, but independent confirmation of attendance and completion is required. • Credentials earned • Application of information and knowledge to improve the diving industry

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DEMA’s Award Honorees are recognized each year at the DEMA Awards Party. In 2017, the Reaching Out Award Honorees are Al Hornsby and Doug McNeese. The Wave Makers Award Finalists are: • Angela Cowan (NAUI) • Robert Currer (Patriot Scuba) • Karina Erickson (Ralph Erickson Educational Foundation) • Jessica Keller (Associate Member) The 2017 Wave Makers Honoree will be revealed at the 2017 Awards Party. The 2017 Award Committee congratulates this year’s award honorees!

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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 US and International issues, gathers input from Members of the diving industry, and provides input to government officials and organizations via the DEMA staff. The Public Policy Committee works for the betterment of the recreational Diving Industry, seeking to engage in activities which promote the health of aquatic resources while protecting diver access to those resources, so that we all have a clean and healthy place to dive. The Committee encourages activities which protect the underwater environment, and actively monitors legislation and government administrative activities globally to prevent legislation which may adversely impact diving businesses or dive site access. Legislative advocacy often requires using substantial resources, but can be well worth the effort and expense. Advocacy provided through DEMA’s Public Policy Committee provides DEMA Members in the US and internationally with a direct voice in the legislative process. DEMA monitors legislative and regulatory activity worldwide, and when DEMA can act or publicly comment on potential legislation which may have a far-reaching impact on the diving industry, DEMA Members receive advance notifications regarding changes to US federal, state, and local, or international laws. Using a sophisticated online notification system, DEMA Members in the US can comment directly to their elected federal officials on issues important to them, and Members internationally can reach the same offices when DEMA provides contact information. One of the goals of this effort is to provide such notification in time for Members to act alongside DEMA, participating in actions affecting these issues. DEMA monitors and responds to many pieces of legislation, and many are listed in this report. It is important to note that some legislative attempts both in the US and internationally may be vetoed, may not pass out of the legislative body, or may become law despite DEMA’s or the Industry’s objections. To the extent possible, the Public Policy Committee reports this legislative activity to the DEMA Membership so that they stay informed of issues that relate to the Industry. The 2017 Public Policy Committee is composed of Dan Orr, Chair (Dan Orr Consulting), Stuart Cove (Stuart Cove’s Dive Bahamas), Dallas Edmiston (NAUI), Mike Hollis (Aqua Lung and Pelagic), Al Hornsby (PADI), Jeff Nadler (PADI), Carlos Santana (Hawaiian Islands Recreational Scuba Association), William Ziefle (Divers Alert Network), Tom Ingram DEMA President & CEO, and Bob Harris, DEMA’s Legislative Advocate.

DEMA Public Policy Position Statements for 2017 DEMA has adopted the following Public Policy Position Statements that represent 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.

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Business Management. DEMA supports legislation that eases expenses and regulatory burdens on the management of 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, social media, and Internet. Employment Practices and 40-Hour Workweek. DEMA supports flexibility in employment practices for all diving businesses. Legislation will be reviewed if it would increase or restrict employment practices for our members. Employment practices on which DEMA supports increased flexibility include: number of work hours, minimum wages, non-exempt vs exempt employees, rules regarding independent contractor vs employees, and other labor practices. Environmental Issues. DEMA supports reforms that promote the health of aquatic resources while protecting diver access to those resources so that we all have a clean and healthy place to dive. Health Care. The diving business community encourages legislation that will allow businesses to offer cost effective insurance programs to their employees without undue regulation or penalty. Safety Regulations. 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 system making workers compensation insurance more affordable while maintaining high quality services to the injured, and supporting 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 services providers, and support the long-term viability and availability of diving-related business and professional insurance. Scuba Diving and Snorkeling NOTE: There is currently no “Position Statement” on scuba diving and snorkeling. Using CQ Roll Call software, DEMA conducts weekly searches on key words which may impact the recreational diving industry. Fair Government Practices NOTE: There is currently no position statement on Fair Government Practices. Using CQ Roll Call software, DEMA scans for recreational activities that may obtain a competitive advantage over recreational diving due to government policy or regulation, or when government policy or regulation creates an undue hardship on recreational diving. When these are revealed DEMA can act in an advisory capacity to government agencies, or can organize the recreational diving community to combat unnecessary regulation.

During 2017, DEMA devoted resources to several issues impacting the diving industry: 1. DEMA’s ongoing litigation against the Army Corps of Engineers to force the Corps to conduct a new Environmental Impact Survey prior to the commencement of dredging operations in Port Everglades Florida. 2. Senate Bill 3099 – Access for Sportfishing Act of 2016 – DEMA actively opposed this federal bill, which prohibited using “provisioning ecotourism” (introducing small amounts of food) to attract sharks which are otherwise too shy for observation or photography, but allows shark feeding to harvest them. 3. Maintaining the moratorium on harvesting Goliath Grouper – DEMA continues to actively oppose a proposal from the Florida Fish and Wildlife Commission to remove the moratorium. 4. Goliath Grouper Survey 5. Support of Florida’s ban on shark finning 18


6. 7. 8. 9. 10. 11. 12. 13.

Support of a federal ban on shark finning Commenting on the US withdrawal from the Paris Climate Accord Requesting continued funding for Brand USA Begin the revision of the Global Interactive Marine Experiences Council (GIMEC) marine life interaction guidelines Submitting comments on a video depicting fishermen dragging a shark behind a boat at a high rate of speed. Submitted comments on the need for Marine Sanctuaries Submitting suggestions and comments regarding the US exempt employee and overtime salary threshold Signing on to a letter with Miami Waterkeeper regarding Florida’s Intracoastal Waterway Project by the US Army Corps of Engineers

DEMA’s Ongoing Litigation – Army Corps of Engineers and Port Everglades To prevent the unnecessary destruction of coral reefs, in July 2016 the DEMA Board of Directors voted to accept and act on the recommendations of the DEMA Public Policy Committee to join a lawsuit being filed by four environmental groups and a DEMA Member Retailer, against the US Army Corps of Engineers (Corps). The goal of the suit was to require the Corps to complete a new Environmental Impact Survey (EIS) prior to beginning the Port Everglades (Fort Lauderdale, Florida) dredging operation, then scheduled to begin 2018. The new EIS was needed following the Corps’ destruction of the reefs and endangered corals in a Port of Miami (PortMiami) dredging operation. The PortMiami’s operation was approved and executed using an EIS from the same survey provider working with Port Everglades; the Miami survey predicted far less destruction to Miami reefs than occurred. The threat of more coral destruction and siltation damage near Port Everglades was a major concern to the South Florida Diving Industry. The DEMA Board voted affirmatively for a budget resolution to release up to $12,000 in then unbudgeted funds to join the existing lawsuit. DEMA filed the required notification to the Army Corps via letter on August 16, 2016 and officially joined the litigation on August 17th when the suit was filed in federal court. In late January 2017, after much legal wrangling, the Army Corps of Engineers, DEMA and the other litigants in the Port Everglades lawsuit reached an agreement with the Corps to place a hold on all dredging operations until a new environmental assessment was completed. With that agreement, DEMA and the other litigants suspended legal action with the stipulation that the Corps stops dredging and (importantly) employ a new environmental study prior to the beginning of dredging operations. This remains a major victory for the reefs in the Fort Lauderdale area and is a good outcome for the reefs and the diving community! To achieve this goal, DEMA collaborated with Earth Justice, Miami Waterkeeper, and other litigants to be sure the interests of divers were considered. Together these groups have helped protect the coral reefs in the Fort Lauderdale area. DEMA will remain vigilant on this issue to ensure that the Corps is using the results of the new environmental survey in their dredging operation. Senate Bill 3099 – Access for Sportfishing Act of 2016 – Banning Shark Feeding This federal bill, introduced by Senator Bill Nelson and co-sponsored by Senator Marco Rubio during the summer of 2016 sought to prohibit “provisioning ecotourism” – the act of temporarily attracting sharks by concentrating a food source for observation and photography - but allowed chumming/baiting for sharks to harvest them. The DEMA Public Policy Committee recommended that DEMA oppose this bill and the Board voted to accept the recommendation. DEMA organized an Advisory Group to assist in understanding this bill and its ramifications for the industry and for sharks. DEMA opposed the bill and arranged for DEMA Staff, and available members of the Public Policy Committee and Advisory Group to meet with the bill’s sponsors in Washington DC. On January 9-10, members of DEMA’s Shark Feeding Ban Advisory Group (Tom Ingram, Bob Harris, Dan Orr, Neal Watson, Stuart Cove) traveled to Washington DC to meet with the sponsors as well as with other representatives’ offices to discuss DEMA’s opposition to the clause banning provisioning ecotourism.

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DEMA presented peer-reviewed research supporting DEMA’s position in opposition to the bill to each senator and representative, and included a letter expressing DEMA’s concerns about the shark feeding ban provision in S. 3099 and other pertinent information about the Association. The offices visited included, Senator Marco Rubio, co-sponsor (R. Florida), Senator Bill Nelson, sponsor (D. Florida), Senator Diane Feinstein (D. California), Congressman Scott Peters (D. California), Congresswoman Ileana Ros-Lehtinen (R. Florida). Representatives from DEMA also met with the new superintendent of Biscayne National Park, Margaret Goodro. It is important to note that S. 3099 was primarily designed to address issues of access to Key Biscayne, and that the shark feeding ban provision was added at the behest of the Florida Fish and Wildlife Conservation Commission (FWC). During the meeting with Senator Nelson’s legal counsel Jeffrey Lewis, DEMA addressed the impact the shark feeding ban provision would have on the recreational diving industry in the US. Mr. Lewis indicated that FWC had painted a different picture than DEMA described; FWC portrayed the diving industry as being in support for such a ban. Mr. Lewis indicated that with the information DEMA provided, Senator Nelson would not support the shark feeding ban provision should a new version of S. 3099 be resurrected. Further, Mr. Lewis also indicated that with the recent hiring of a new Parks Superintendent in charge of Key Biscayne, it appeared the need to resurrect S. 3099 may no longer be necessary, and that it is unlikely that a stand-alone shark feeding ban would be proposed. DEMA also testified in opposition to this bill before the FWC in February 2017 at a regularly scheduled FWC meeting in Crystal River, Florida. As of this writing, S. 3099 has not been resurrected. DEMA continues to monitor bills to which provisions similar to the shark feeding ban found in S. 3099 may be added. Goliath Grouper – Discontinuing the Florida Harvest Moratorium During an early February public meeting by the FWC in Crystal River, Florida the possibility of lifting of the moratorium on harvesting Goliath Grouper was raised. This harvest moratorium has been in place in Florida since 1990. Following stock assessment studies conducted in 2016 by FWC, which were NOT accepted by the science community as being valid for fisheries management purposes, FWC sought the direction of the Commission to determine the next steps in the management of Goliath Grouper. The choices in Goliath Grouper fisheries management as presented by FWC staff were: 1. Retain the status quo – no harvest (although catch and release is currently allowed) 2. Allow a limited harvest to occur (theoretically without impacting the rate of the Goliath Grouper fishery recovery). Historically, the distribution of goliath grouper within the continental U.S. stretched from North Carolina through Texas, with the center of abundance extending from the central east coast of Florida to the Florida Panhandle. The southeastern U.S. goliath grouper population experienced severe decline during the 1980’s as a result of overfishing and has been closed in both state and federal waters since 1990. However, in recent years, an increased number of goliaths have been reported in south Florida. The increased population of this at-risk species has allowed for the growth of both a goliath grouper catch and release fishery and a goliath dive-viewing industry. However, among fishers, this increased population has become an attractive target for harvest; fishers contend that this species has become a nuisance in some areas and the population should be culled. Outside of south Florida, the goliath grouper remains largely absent in their historic range. Given the “data-poor” nature of this fishery (e.g., 27 years of no landings, high uncertainty in historical landings, many unknowns in life history), it has been difficult to assess the status of the stock and objectively evaluate whether recovery has been achieved. A 2010 stock assessment led by FWC was inconclusive on whether the stock had recovered to sustainable levels. FWC staff completed a new assessment in 2016 with data through 2014. The results were, by FWC’s admission, highly uncertain (i.e., there is a large margin of error), but this new assessment indicates that goliath grouper abundance in south Florida has greatly increased since the fishery was closed in 1990. Importantly, the reported results

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of this assessment were NOT deemed acceptable by scientific peer reviewers, and indications are still that stock recovery outside south Florida has not been achieved. Due in part to the important role the Goliath Grouper plays in the diving community in South Florida, and supported by the lack of peer-reviewed data that the Goliath fishery has recovered, DEMA continues to support the moratorium on harvesting the Goliath Grouper, and has provided testimony and public comments to this effect going back to 2008. During the February meeting in Crystal River, FWC staff reviewed goliath grouper management history, biology, and the latest assessment results, as well as provided an overview of stakeholder perspectives, federal management of goliath grouper, research needs, and how those needs could be met. Staff presented an overview of potential general management strategies that could be considered for this fishery in Florida state waters if the Commission is interested in pursuing a limited harvest (such as using harvest tags, size and bag limit restrictions, limited harvest seasons and areas). The FWC staff requested that the Commission provide direction in exploring management options. Under continuing pressure by fishers, including spear fishers, the FWC has undertaken several “workshops” throughout Florida, asking for public input on the concept of removing the harvest moratorium. In late June DEMA used a webbased survey to ask members of the diving industry from all over the world their opinions on lifting the Florida goliath grouper harvest moratorium. The Alert can be found here. Along with a letter stating DEMA’s position in favor of maintaining the harvest moratorium the results of the survey were sent to FWC Chair Brian Yablonski in late August. In September Chair Yablonski responded. As of this writing, FWC continues to conduct workshops throughout Florida. Given the continuing lack of peer-reviewed data that indicates otherwise, as well as the concerns over mercury content of Goliath Grouper, and other concerns, DEMA believes that lifting the moratorium on the harvest of goliath groupers would be detrimental to the fishery. Given the economic value of the goliath to the diving industry in Florida, DEMA continues to oppose the lifting of the harvest moratorium. Florida Ban on Shark Fins In May Florida Governor Rick Scott signed a bill in Florida increasing penalties for shark finning, codifying a Florida Fish and Wildlife Conservation Commission rule prohibiting this practice. The bill was supported by DEMA, but as signed, does not go as far as DEMA wanted. The original version of the bill would have made it a first-degree misdemeanor in the state to trade or sell shark fins and tails, as well as suspend or revoke permits for commercial and recreational fishermen found in violation. However, lawmakers removed the language regarding sale and trade and they substituted language that calls for the serious punishment for fishermen found in possession of fins. DEMA has called for a total ban on the sale of fins, and cites a study that sharks are far more valuable alive than dead. The 2016 study indicates that divers seeing sharks on dive trips in that state contributed $221 million in revenue, supporting almost 4,000 jobs. Selling shark fins nationwide appears to generate about $1 million annually. HR 1456 – The Shark Fin Sales Elimination Act of 2017 In March 2017 the federal “Shark Fin Sales Elimination Act of 2017” (HR 1456) was introduced in the US House of Representatives by Mr. Ed Royce of California (R-CA), Chair of the House Foreign Affairs Committee, and by Gregorio Kilili Camacho Sablan (I-MP). This bill makes it illegal to possess, buy, or sell shark fins or any product containing shark fins. A person may possess a shark fin that was lawfully taken consistent with a license or permit under certain circumstances. Penalties are imposed for violations under the Magnuson-Stevens Fishery Conservation and Management Act. Chair Royce has stated that, “The United States can set an example for the rest of the world by shutting down its market for shark fins, which are often harvested by leaving these animals to die a slow and painful death at the bottom of the ocean. There are still 39 states where the purchase of shark fins is legal. The bipartisan Shark Fin Sales Elimination Act is needed to eradicate shark finning for good.”

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The demand for fins, the key ingredient in shark fin soup, is one of the greatest threats facing shark populations around the world. Fins from as many as 73 million sharks end up in the global market every year, and more than 70 percent of the most common shark species involved with the fin trade are considered at high or very high risk of extinction. While shark finning is illegal in U.S. waters, shark fins continue to be bought and sold throughout the U.S. The Shark Fin Sales Elimination Act curbs the market for shark fins by making it unlawful to possess, sell or buy fins anywhere in the US. DEMA reached out to the industry and asked everyone in the US to contact their elected representatives in Congress and share how this bill could protect the shark population as well as how dive businesses and the recreational diving industry are made stronger by divers’ ability to see sharks in the wild. Using DEMA’s subscription to CQ Roll Call, a message could be sent directly to US elected officials, encouraging the passage of this bill. As of this writing, 183 representatives (124 Democrats, 59 Republicans) have supported this bill and more than 230 members of the diving industry have written to their representatives asking them to support the bill. U.S. Withdrawal from the Paris Climate Accord In June, the current federal administration indicated that it would withdraw the US from the Paris Climate Accord. DEMA requested that members of the Industry read the Accord and comment, providing their own opinions of the US withdrawal. See DEMA’s statement here. Requesting Continual Funding for Brand USA Brand USA is the destination marketing organization for the United States with the mission of increasing incremental international visitation, spend, and market share to fuel the nation's economy and enhance the image of the USA worldwide. DEMA asked members of the Industry to support protecting Brand USA by providing a link to the CQ Ignite software. Messages from Industry members could be sent directly to legislators through the software. See the Alert here. Re-write of GIMEC Guidelines In 2000, a group called the Global Interactive Marine Experiences Council (GIMEC), led in part by Bob Harris and DEMA constructed the first set of marine life interaction guidelines for the diving industry. At the time, there was virtually no formal research available on the effects or process of conducting responsible, sustainable interaction with marine life. GIMEC provided interaction guidelines based on the experiences of operators in the field. The formal research conducted since that time has corroborated the guidelines first published by GIMEC more than fifteen years ago. DEMA has undertaken to draft an updated version of these guidelines for review, to include the formal research published since the guidelines were first introduced, and hopes to promote the guidelines to the industry as a means of staving off government intervention in this field. Comments on a Video Depicting Fishermen Dragging a Shark Behind a Boat at a High Rate of Speed. In late July a disturbing video was posted on YouTube by Florida fishermen showing a live shark, tied by the tail and being dragged at a high rate of speed behind a boat, resulting in the shark's death. The video was picked up and posted online by USA Today. DEMA submitted comments about this incident to Florida Governor Rick Scott and several officers within FWC. DEMA also asked members of the Industry to send in comments via email, and provided the email addresses for the Governor and FWC officials, along with suggested verbiage. The Alert can be seen here. The letter to Governor Scott is attached to this report. Submitted Comments on the Need for Marine Sanctuaries In late June, the current administration issued an Executive Order to review National Marine Sanctuaries and Monuments created or expanded within the last 10-years (EO 13795 and Federal Register dated June 26, 2017). DEMA submitted comments regarding our support for marine sanctuaries and the need for periodic review. DEMA’s comments can be found in this news story.

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Department of Labor Overtime Rule In May of 2016 the US Department of Labor finalized rules for exempt and non-exempt employees and changed the threshold for overtime, almost doubling the amount. At the time DEMA submitted comments in opposition as the new rule would have a detrimental impact on all small businesses, including those in the diving industry. With the new administration in January 2017, the implementation of the new rule was suspended. In July, the current administration issued a Request for Information on how the new rules would impact businesses. DEMA submitted comments in response to this information request. Collaborating with Miami Waterkeeper: Florida’s Intracoastal Waterway Project (US Army Corps of Engineers) Miami Waterkeeper, with whom DEMA partnered in the lawsuit to stop the dredging of Port Everglades until a new environmental impact study could be conducted, informed DEMA that the Army Corps of Engineers intended to dredge the Intracoastal Waterway (IWW) in Broward County, Florida. The dredging operation is likely to have a negative impact on coral growth as well as seagrass, creating a problem for the Manatee in the area. With the approval of the Public Policy Committee, DEMA signed on to the letter to the Army Corps of Engineers. 2017 has been a busy legislative year and the trend for active legislation of this sort promises to continue into 2018. DEMA and the Public Policy Committee recommend that all diving businesses become involved with these important issues.

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Retailer Resource Committee: Davis Graham, Chair DEMA established the Retailer Resource Committee beginning in 2014 with the goal of focusing on developing retailer resources and supporting education, access to pertinent and actionable data, and, ultimately, business growth. The 2017 Retailer Resource Committee consisted of companies of varying sizes and training organizations from different regions, with each bringing their expertise to the group, and included several members interacting with Retailers on a regular basis:

Retailer Resource Committee Davis Graham - Texas Dive Center, Texas (Chair) William Cline – The Cline Group, Texas Patrick Hammer – Scuba Emporium, Illinois Floyd Holcom – Astoria Scuba, Oregon Myra Kurn – Ocean Enterprises, California Sid Stovall – Ascuba Venture, Texas (Vice Chair) Scott Taylor – A1 Scuba, Colorado (Immediate Past Chair) Mark Young – Dive Center Business and Dive Training Magazine, Missouri

DEMA-Sponsored Seminars Seminars sponsored and produced by DEMA during the annual DEMA Show are staples of education for members of the Industry. In 2017 the topics and speakers for these DEMA-sponsored seminars were selected by members of the Retailer Resource Committee. To determine the 2017 seminars and speakers, a rating system was developed and a call for seminar proposals was announced. Speakers who submitted proposals were rated on past DEMA Show performance, on videos they submitted, on the proposed topic, topic outline and description, the proposed seminar’s educational objectives, and the needs of the DEMA Show Attendees. 28 seminars were selected by the Retailer Resource Committee: Session Title

Speaker

Speaker Company

Digital Marketing Magic Measure Your Marketing: How to Use Analytics to Evaluate Your Marketing Efforts

Steve Strauss Ken Countess

Get Your Business Funded! Grow Your Diving Business with Email and Social Media

Steve Strauss Ken Countess

Rock Your Marketing with Facebook — the Most Popular Social Media Network in the World

Ken Countess

Instagram 2017 — Pictures Tell the Story: Why You MUST Have It and How to Make It Work for Your Dive Business How Email Marketing Can Deliver a 44-to-1 Return for a Business in the Diving Industry — Generating Greater Awareness, Delivering More Quality Leads and Energizing Sales Inventory Is NOT Fine Wine, It Doesn’t Get Better with Age — Learning to Maximize Your Inventory

Lynn Switanowski Ken Countess

The Strauss Group The Countess Group — Marketing & Communications The Strauss Group The Countess Group — Marketing & Communications The Countess Group — Marketing & Communications Creative Business Consulting Group The Countess Group — Marketing & Communications Creative Business Consulting Group

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Lynn Switanowski


How to Capture the Attention and Money of Today's Millennials

Lynn Switanowski Thomas Hudgin

Hiring and Retaining Key Employees — Creating a Self-Motivating Work Environment How to Create a Step-by-Step Social Media Plan to Maximize Sales Moving Forward...What It Takes to Be Number One

Anne Obarski

Creative Business Consulting Group Wilmington Quality Associates Creative Business Consulting Group Wilmington Quality Associates Merchandise Concepts

Shelli Hendricks Anne Obarski Steve Huskey

Blue Horizon Solutions Merchandise Concepts High 5 Promotions

Shelli Hendricks Georgianne Bender Steve Huskey

Blue Horizon Solutions KIZER & BENDER Speaking!

Georgianne Bender Tom Ingram & Nicole Russell Tom Shay Richie Kohler Tom Shay Steve Huskey Tom Shay Nicole Russell Steve Huskey

KIZER & BENDER Speaking!

Lynn Switanowski Thomas Hudgin

Next Gen: Three Ways to Attract, Manage and Sell to Younger Generations Seven Keys to Unlocking Your Talent Strategy Be an “Undercover Boss”: Clues to Create a Team of Superheroes Keynote Session: Secrets to Facebook Advertising That They Won’t Tell You Engaging Talent: Setting Your Team Up for Success How to Find, Train and Motivate the Best Employees Five Power Hacks to Make YouTube an SEO Ranking Machine for Your Business The Science of Shopping: How to Set Your Sales Floor to Sell! Go Dive Now Update and Facebook Advertising Review Strategies to Win for Your Dive Shop in a Challenging Economy Forty Years of Shipwreck Exploration Creating a Business Plan for Your Dive Shop Seven Ways Your Site Fails on Mobile SEO What Your Accountant Is Not Telling You Go Dive Now Update and Facebook Advertising Review Four Facts about Online Reviews That Can Kill Your Business

High 5 Promotions

DEMA Profits Plus Solutions Charlie Hudson Writes Profits Plus Solutions High 5 Promotions Profits Plus Solutions DEMA High 5 Promotions

How Can DEMA Measure Retail Growth? DEMA’s Mission, to “Bring businesses together to grow the diving industry worldwide” is measurable and the Retailer Resource Committee is charged with determining the best methods for measuring growth at the retail level. To begin, a “dashboard” indicating important growth information is being constructed for use by both retail stores and the committee to create a baseline for measurement. Items included in the dashboard include: • • • • • •

• • • • • •

Customer Engagement Location Analysis Physical Store Characteristics Marketing and Customer Analysis Advertising Plan and Execution In-Store Instruction

Online Instruction In-Store Sales Online Sales Employee Management and Training Financial Management Dive Travel Sales

The Retailer Resource Committee will pursue this issue through 2018. In addition, the Committee will continue assisting the Industry in supporting education, providing access to pertinent and actionable data, and, ultimately, business growth.

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DEMA Show Committee: Jenny Collister, Chair DEMA Show Ambassador Program The 2017 Ambassador Program recognized loyal participation of past attendees and encouraged show growth and engagement. All past attendees who had attended DEMA Show for five or more years were eligible to apply for the program by completing a short online application. Once applications were submitted, the ambassador prospects were required to register to attend and bring in three or more attendees who had never attended DEMA Show. This year, we recognize Tige Pratt and Carolyn Wagner for successfully completing the program and their continued efforts in support of the Show.

DEMA Show First Time Attendee Orientation In 2016, 30% of those that registered for DEMA Show registered as first timer attendees. In response, DEMA Show will execute a First Timer Orientation on November 1st and 2nd at 9:00 a.m. where first time attendees will receive an overview of DEMA Show and receive tips and tricks on how to navigate the Show floor and maximize their time at DEMA Show.

DEMA Show Marketing Tool: Feathr DEMA Show has implemented an ad retargeting campaign geared towards converting registrants faster; identifying new leads; better understanding our lists; and utilizing referral marketing. Leading up to the show, six digital advertising campaigns will run to promote the show to attendee prospects. Additionally, each DEMA Show exhibitor will be provided an individual landing page to promote their presence at DEMA Show and encourage their customers to register for DEMA Show.

DEMA Show and Go Dive Now In 2017 the DEMA Show theme was selected as Go Dive Now to bring awareness to DEMA’s ongoing consumer marketing campaign efforts to grow our Industry. The DEMA Show committee will continue to include elements of the GoDiveNow campaign into the Show theme in 2018 to continue to highlight this important campaign.

DEMA Show Among Top 250 Shows! DEMA Show was once again recognized as being one of the top 250 tradeshows in the US in 2016 by Trade Show News Network. The Show Committee thanks all who participate in DEMA Show, making it possible to help keep costs down for everyone!

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. DEMA Show is one of the 250 largest trade shows in the United States and as such, 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.

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• • •

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 10,000 attendees. Hotel facilities should accommodate a minimum of 1,200 to 1,400 rooms peak night pick up, with 4,000 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.

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