The Paddlesports Industry Sees Continued Change in Trade Associations

 

TAPS issued a press release last week stating that the possible demise of the trade organization was on the horizon; while PIA recently landed a financial windfall; and the OIA Paddlesports Working Group is moving ahead with an aggressive new project.  However, there still remains a continued uncertainty over the future leadership of the paddlesports industry.

Trade Association of Paddlesports

The first piece of news last week came from TAPS President Tim Rosenhan and Vice President Joe Matuska, who said in an open letter to the industry that a loss of a $30,000 stipend from Outdoor Retailer and mounting losses were forcing it to cancel the West Coast Sea Kayak Symposium for the first time since its inception 26 years ago. The trade group, based in Washington State, also acknowledged that it might wind itself down this year depending on events.

Will TAPS continue? asked Rosenhan and Matuska in their letter. TAPS will operate through 2010. We will watch developments with the new OIA paddlesports group. We will also listen to our membership as to what useful role they want us to play. We believe that above all everyone in the industry desires healthy growth in paddlesports, and we are committed to that goal.

People across the industry lamented the loss of the symposium, which was held at the iconic Fort Worden State Park and Conference Center overlooking Puget Sound. Launched in the early 1970s as a retreat for sea kayakers, the symposium aimed to advance the activity by bringing together enthusiasts for a few days of instruction and seminars. It became a major gathering point for a group often referred to as the tribe, and eventually picked up such sponsors as Thule, Subaru and several major kayak brands.

But the magnificent venue also presented challenges. First, the park is relatively remote. Second, the state forbids the sale of boats on the beach, which alienated many commercial sponsors.             

 

Finally, Washington state significantly raised housing, meal and exhibition fees, which had a chilling effect on attendance, according to Rosenhan. These obstacles made it difficult to attract more than hardcore enthusiasts to the event, which led to a decline in sponsor support.

The symposium never generated significant sales for brands or dealers, said reps and brand executives who attended. It did, however, contribute to the mystique and overall growth of sea kayaking for nearly three decades.

That will leave a big hole, lamented Mark Hall, owner of Delta Kayaks of British Columbia. …A huge hole. It was the premiere format for exposing anything we did on the west coast.

Last year, the event, which usually generated a modest profit of $5,000 to $25,000, lost about $15,000 –  in part because TAPS did not have the money to hire a show director to recruit sponsors, said Rosenhan.
The nail in the coffin-for both the symposium and possibly TAPS itself – was when Outdoor Retailer opted to shift an annual stipend it paid to TAPS to the new Paddlesports Working Group formed by major industry players under OIA.  That stipend, which had been as high as $62,500 in one year, was $30,000 last year.

Rosenhan said the symposium could come back if enough volunteers rise to the occasion. As for TAPS, it has lost more than half its funding in one year.

TAPS will operate through 2010, Rosenhan and Matuska said in their letter. We will watch developments with the new OIA paddlesports group. We will also listen to our membership as to what useful role they want us to play. We believe that above all everyone in the industry desires healthy growth in paddlesports, and we are committed to that goal.

Across the country, TAPS erstwhile merger partner – the PIA-was learning their financial fortunes were taking a turn for the better. PIA President Ed Council told The B.O.S.S. Report Friday that he expects a six-figure windfall this month from the carrier that used to operate the associations defunct liability insurance fund.

PIA launched its own liability insurance fund years ago amidst an insurance crisis which stranded many outfitters without coverage. The PIA ended up closing the pool several years ago after large claims threatened to bankrupt the fund. The insurance carrier who operated the fund has since been keeping its reserves in escrow while it settles outstanding claims.

Last month, Council said he learned that the carrier had settled all but a handful of claims and would be able to release a six-figure sum to PIA from escrow this month.

We have not decided how to use the money, said Council, who took the PIA job last year after a proposed merger with TAPS fell apart at the eleventh hour. Growing the industry is job one.

Possible uses included resuscitating the Lets Go Paddling program, which was launched online two years ago in partnership with TAPS to grow the sport. The program has essentially stalled because the groups were unable to raise the $2 million to $3 million needed to take it to the next step, which was a nationwide advertising campaign.

Last year after merger talks with TAPS failed, PIA proposed that itself, TAPS, OIA and America Outdoors Association offer each others members affiliate memberships at deep discounts. So far, none of the organizations have taken him up on his offer.  Friday he said he will ask his board for permission to offer TAPS members a years free membership with PIA. He said PIA stands ready to work with anyone who wants to grow the sport.