Tunisian budgets pushed to limit

2010-09-03

Back-to-back events have put Tunisian families in a financial bind. How are they handling the pressure?

By Mona Yahia for Magharebia in Tunis – 03/09/10

[FETHI BELAID/AFP/Getty Images] Expenses for Eid clothes and school supplies are putting a strain on Tunisian consumers.

From summer vacations and Ramadan food to new Eid apparel and school supplies, expenses come in an uninterrupted series this year. Thanks to the unusual calendar, Tunisians get no break from having to shop and spend.

"Imagine having to split your salary with two children in school, in addition to Ramadan and the Eid," said Rawda, an employee. "It is virtually impossible."

Not only citizens are worried. On Thursday (September 2nd), the Consumer Defence Organisation (ODC) urged Tunisian families to adopt a moderate mode of consumption that is better aligned to the family budget.

Tunisian television has also been airing awareness-raising spots to warn against over-spending and to help people cope with the concurrent seasons of excessive consumption.

Tunisian markets, meanwhile, are busy selling new clothes for Eid, pastries and school necessities. The seasonal purchases come on top of all the other daily expenses.

"Prices are high," said Adel, a banker. "Tunisians now prefer to vacation in hotels and buy foreign brand name products. Added to that are the cost of private tutoring, phone bills, and internet bills, all of which are new expenses that were recently introduced and which call for thinking twice before wasting money on them."

Imed Salha, a teacher, agrees that day-to-day living is more expensive because Tunisians have new ideas regarding what they consider essential.

"What used to be regarded as luxury items are now looked at as a necessities, such as AC sets, cars, cell phones and the internet. Plus, standards of living have gone up and so has the pressure of the media and advertising. We are doing our best to meet all needs, but it's difficult. Eventually, there must be another source of income beside one's original job," Salha said.

Amel Aoun, a store owner, said, "Consumption must be rationed, which is not easy, given the pressure exercised by kids. I try, however, to meet some of their needs and postpone other needs. Other times, I choose to ignore some of those needs when they are above my budget."

"One's consumption mode reflects his or her character. When consumption is moderate and in line with one's resources, one is generally prudent and well-balanced," explained Imed Rkik, a specialist in psychological and nervous diseases. "Debt cause one to lose his or her stability."

Advertising has an effect on this behaviour, he added.

"Relevant organizations and the media must warn against excessive consumption. We should respond to the temptation of commercials only insofar as our resources allow," Aoun said.

Tunisians are not ignorant of the situation, a survey released August 31st by the Consumption Institute in Tunis determined. In fact, 79% of Tunisians plan their budgets.

"The survey revealed that Tunisian consumers have awareness," said economics professor Fathy Zouhir. "When we see crowded stores, we might be led to think that they lack awareness and are tempted to be overly consumptive. But that is not true."

About 55% of respondents questioned in the north-western, central and coastline regions of Tunisia felt their personal resources were insufficient to cover family spending needs for this year's many obligations.

But as Ali Gharbi, head of the Consumption Institute, noted, "Tunisian consumers are well-aware of the coinciding seasons".

"They are trying to come up with solutions for their budgets," he said.

His institute expects to learn more from the next survey, which will expand to all of Tunisia.