Results of the eighth annual Visa Canada gift-giving survey show that 22 million Canadians plan to spend an average of $930 on gifts this holiday season; the highest personal average recorded since the survey began.

Conducted by Maritz Research, the study shows that while a majority of Canadians (87 percent) intend to tackle their lists at local stores, significantly more shoppers with Internet access and a credit card will turn to e-retailers than in previous holiday seasons (23 percent in 2006 versus 18 percent in 2005).

"When we looked at the information this year, it was interesting to see a shift in provincial spending averages and more people turning to the Internet," said Tania Freedman, Director of Corporate Communications, Visa Canada. "Provinces that have traditionally spent the most on holiday gifts saw a decline in their holiday budgets, and provinces that shied away from online shopping last year showed an increase in e-commerce spending."

Holiday spending by region
Respondents from Quebec expect to spend more on holiday gifts this year, boosting their budgets by 14 percent to $740. British Columbians are entering the festive season with eleven percent more money earmarked for gifts and will spend $917 in 2006. Shoppers in Manitoba and Saskatchewan, who reported a 17 percent increase in 2005 over 2004, will spend nine percent more on gifts this year. While 90 percent of Ontarians expect to hit the mall to buy gifts this year, an increase of seven percent over last year, the average amount residents plan to spend has remained fairly consistent ($1,068 in 2006 versus $1,055 in 2005).

Atlantic Canadians, who traditionally have had the most generous holiday shopping budgets for five of the last eight years, report a decline of almost 22 percent ($858 in 2006 versus $1,098 in 2005). Albertans have also reduced their holiday allowance and will spend $1,042 this year compared to $1,081 in 2005.

To date, Canadians have already spent $2.8 billion on their Visa^® cards during the peak holiday shopping season (November 21-November 27). Survey respondents pointed to an increase in the costs of goods, more people to buy for and having higher incomes as reasons for larger holiday budgets.
Regardless of whether we're hitting the malls with a smile or rushing to pick up holiday odds and ends, more Canadians are buying gifts this year than last and 45 percent have already started their holiday shopping.

Who's on our holiday shopping lists?
According to the survey, our gift-giving circle includes an average of ten recipients, and we buy an average of 13 presents. However, our spouses remain the hardest people to cross off the list. While 38 percent of men believe their significant other is the most challenging to shop for, only 17 percent of women would say the same. A quarter of female respondents put mum and dad on top of the "hardest to shop for" list. Men plan to spend more on their spouses -- an average of $257 compared to the $192 spent by women.

Canadians typically shop for two children around the holidays, but will spend an average of $25 less ($194 versus $219) per child than in past years. Ontario parents, who still lead the country in the average amount spent per child ($220), and those in the Atlantic region will spend less on their children this year. Parents in Newfoundland, Nova Scotia, New Brunswick and PEI will spend almost $50 less per child.

What are Canadians buying?
For the eighth year in a row, clothing is the most popular gift for friends and family. Gift cards and gift certificates moved up from fourth to second spot this year, tied with toys as likely gifts to exchange. Books (61 percent), music items (55 percent) and electronics (53 percent) round out the top items Canadians will unwrap this year.

According to the survey, clothing also tops kids "must have" lists. Eighteen percent of children want to head back to school after the holidays in the newest duds, while 11 percent would prefer a toy and nine percent have requested electronics. Six percent of children have asked for a gaming system, iPod or MP3 player, and five percent would prefer cold hard cash from Santa.

Albertans are the most likely to purchase holiday gifts online
Survey results show significantly more Canadians will log on to the Internet this year for holiday gifts as 23 percent of respondents with Internet access and a credit card report that it's "very" or "somewhat" likely that they'll shop online. Alberta, where 31 percent of respondents are expected to turn to e-retailers, saw the largest increase over last year (20 percent). Regardless of where survey respondents live, all regions of Canada report an increase in the number of people who believe the Internet offers a convenient shopping option.

Electronics, typically the second or third-most popular gift to buy online, has surged to the top of the e-commerce list in 2006. Clothing is in second place at 25 percent, up from 13 percent in 2005. Books, which were the number one Internet gift purchase last year, have slipped to third spot (22 percent), with CDs (19 percent) and toys (nine percent) rounding out the most popular items.

Impulse shoppers don't seem to be turning to the Internet for a last minute dash down an electronic aisle as half of respondents claim to only buy items they planned in advance. The average online shopper will visit 3.7 sites to compare prices before purchasing, but Atlantic Canadians will surf 7.7 sites before deciding on the perfect gift. Albertans will visit the fewest sites (3.1), but will spend the most.

Though more people are shopping online, the average amount Canadians plan to spend this year is down by almost $50 when compared to last year ($236 versus $285 in 2005). Shoppers in Manitoba and Saskatchewan have decreased their online budgets by $58 to $206 and Atlantic Canadians saw a dramatic decrease of $163 in the amount they plan to spend through e-commerce channels. Even though Albertans plan to spend an average of $273 online this year, the highest provincial average, that's $100 less than 2005. British Columbians will also fall back below the $200 mark and spend $97 less than last year's $291. Quebec was the only province to see an increase while Ontario's anticipated online shopping average remained stable when compared to 2005.

Donating to others
The holiday spirit also brings out the best in Canadians as 73 percent of respondents donate items to local food banks and 69 percent donate money to charity. The holiday season also motivates 62 percent of Canadians to put aside clothing for local shelters, and a third will give the gift of their time. Canadians will give an average of $183 to charity during the holiday season, and more women than men will make donations across all categories.

The most wonderful time of the year
According to Canadians, over half (57 percent) of survey respondents believe the most enjoyable part of the holidays is spending time with family and friends rather than the exchange of gifts. Quebecers paint a slightly different picture of holiday highlights -- while 41 percent note family visits are enjoyable, one in four think the best part of the season is the spirit and atmosphere of the holidays - well over the national average of nine percent.

Given our desire to spend time with those closest to us, it's not surprising that 70 percent of Canadians hope to have people over for a dinner party at some point during the holidays. Thirty-nine percent will go all-out and plan a party to celebrate the festive season, while 28 percent are holding off until New Year's to play host, and Quebecers are significantly more likely to have an open house. On average, Canadians will attend three holiday parties and will spend $375 entertaining this year, with Albertans budgeting $409 for the season's fun.

Both men and women plan to have similar social calendars over the holidays, though slightly more men (31 percent versus 25 percent) will have a New Year's party. Those over fifty are more likely to host the main holiday feast or have people over for brunch, while the under thirty crowd are more likely to host a New Year's party.

While 93 percent of survey respondents plan to put up a Christmas tree, guests shouldn't worry about stepping on needles at holiday or New Year's parties as 60 percent of Canadians will opt for an artificial tree. Residents of Atlantic Canada (39 percent) and British Columbia (36 percent) are most likely to enjoy the scent of a real tree while 65 percent of folks from Manitoba and Saskatchewan already have a fake one in the basement.

The national telephone survey was conducted between November 1 and 6, 2006. A total of 1,508 male and female respondents 18 years of age and older were interviewed. The findings are accurate, plus or minus 2.67 percent, 19 times out of 20.

About Visa Canada Visa connects cardholders, merchants and financial institutions through the world's largest electronic payments network. Visa products allow buyers and sellers to conduct commerce with ease and confidence in both the physical and virtual worlds. Visa is committed to the sustained growth of electronic payment systems to support the needs of stakeholders and to drive economic growth.

Visa products currently generate more than $US 4 trillion in sales volume worldwide. Visa cards have unsurpassed acceptance at more than 24 million locations worldwide including one million ATMs. Within Canada, financial institutions have issued more than 27 million Visa cards, accounting for $CDN 155 billion in sales volume. For more information, visit www.visa.ca.

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