Several Dive outfits in Kona Hawaii do it. I have personally watched it happen, several times with my own eyes, while out with them.
I have told them that I find it unacceptable, and stopped using them.
I've also been present, when others have said to these guys, that this terrorising the octos, and leaving them defenseless for 48 hours, is horrible, and they have said, "Well, you don't know how many customers come back, years later, and say how they remember that octopus climbing on their hand..."
So yes, ignorant, uninformed customers do demand it.
To me, it looks like a tropical octo, not particularly large, taken fairly close up.
Don