End of year festivities: How Mauritians spend their bonus

The end-of-year festive season for Mauritians, consists of Christmas and New Year celebrations only a week apart. If children love this period because of gifts, then adults look forward to receiving their bonus. Mauritians who have been at work for a whole year, are entitled to a full month salary as gratuity at end-December by virtue of law. This extra remuneration has the bad habit of being quickly eaten up by traditional shopping sprees during the festive season. If some people invest in their children’s education others prefer spend it lavishly. No two persons spend their bonuses the same way. As explained by consumer advocacy activist Suttyhudeo Tengur, there are three categories of families who view and spend the end of year bonus differently. “The three categories: low-income, middle-income and high-income families differ greatly when it comes to spending their bonuses. If we take the low-income class, their focus remains on repaying debts, buying food and providing for their children’s education. The middle class can afford to fork out on leisure activities. For the high-income class, the bonus is just additional money,” he shares.

Low class: Bonus is a lottery

For the low-income class, the end-of-year bonus might be compared to a lottery ticket for them. Many such families wait for December to get hold of this extra money. How do these people spend their bonuses? According to Suttyhudeo Tengur, the majority of these families spend the bonus on paying back their debts. “Many people fund their monthly grocery shopping on credit at corner shops. So, when they receive their bonus, they try to repay those debts. If they had bought home appliances on credit, they will try to repay a maximum of the outstanding amount so that they can reduce the interest rate,” he says. With a minimum amount of money, low-income families try to buy basic requirements which they need the most such as items for the home, clothes and keep money to buy school materials for their kids.

Middle class families can afford leisure activities

Fortunate enough to be able to make both ends meet, many families belonging to the middle class can afford to spend their bonus in a more lavish way. With this extra money in their pockets, they can plan for a vacation, renovate their houses, save for their children’s education or do some saving.

Vacation and leisure activities

According to the travel agency manager Ajmal Tincowree, of Shamaal Travels, overseas trips are very common in December. “In recent years, we have witnessed an increase in the demand for travel. The most demanded trip is to Rodrigues. Many Mauritian families like to go Rodrigues as it the most affordable destination and they can easily spend 4 to 5 days there. Other common destinations include India, Malaysia, Dubai and Singapore. Many families travel either during Christmas or New Year. Earlier, overseas travel was only done by a certain category of people. Nowadays, people from the middle class have a special budget for travelling. We can expect the middle class to travel once per year,” he reveals. Sales Director at ATOM Travel, Caroline Chen explains that there is a craze in terms of overseas trip during the end of year. She explains that people seize the opportunity to spend quality time with the family. ATOM offers discount rates during this festive season. Caroline Chen explains that favorite destinations during this period are European countries such as France, UK as well as to exotic Asian countries such as Malaysia and Singapore. [[{"type":"media","view_mode":"media_large","fid":"5492","attributes":{"class":"media-image size-large wp-image-11336 aligncenter","typeof":"foaf:Image","style":"","width":"960","height":"540","alt":"Singapore"}}]] “For example, we had sales on festive holidays in London until 14 October at Rs 26,135. Passengers will travel on 24 December. For this end of year, we had offers on Bangkok and Chennai in October. This deal will thus allow passengers to travel to those two destinations during the festive season and they can book their return flight for any date between January and Mars. The ticket price for Bangkok via Reunion was at Rs 26,700 and Chennai via Reunion was at Rs 23,600.” Caroline Chen adds that Mauritians also enjoy spending end of year holidays in Rodrigues as it is a very affordable and enjoyable trip for those who are still looking for a get away during this period. “Package holidays to Rodrigues during this period start at Rs 10,800, hotel accommodation included. Around 1,600 passengers who have booked through ATOM Travel will be traveling to our sister island for end of year festivities.” The Manager of Outbound, Thomas Cook (Mauritius) Holidays Ltd, Rajesh Chamoo explained that during the end of year holidays, people mostly travel to Asia. “During this period, Mauritians like to travel to countries like India, Malaysia and China for shopping and sightseeing. The package we offer to Kuala Lumpur starts from Rs 37,500 (air fare, hotel, sightseeing for 7 nights/8days),” he says. Rajesh Chamoo confidently affirms that, regardless to perceptions that people now prefer to travel on cruises, “most people are still travelling by airplane.” He adds that the end of year holidays is also a period for the whole family to travel. “Most people are travelling with their family at this time of the year. It is common now for parents to take their children on holidays after exams. Rodrigues still a very popular destination. But as mentioned earlier, Asia is very popular for a combination of shopping and sightseeing,” he explains.

[[{"type":"media","view_mode":"media_large","fid":"5493","attributes":{"class":"media-image alignleft wp-image-11328 size-medium","typeof":"foaf:Image","style":"","width":"300","height":"250","alt":"Saving-Plans"}}]]Saving plans available If spending is not your thing or if you want to think about the future, then you might save up part of the extra money. Nowadays, people look for investment plans to secure their future and that of their children. Many middle class and high-income families are showing a lot of interest in the various saving plans. As commented by Pascal Coco, Business Development Coordinator at MCB, Mauritian families are willing to invest on the following plans most: MCB Education plan, MCB Retirement plan and savings account. MCB Education Plan It is a plan for children’s future where customers contribute a monthly amount to cater for their children’s higher education. The client can also increase his monthly contribution by a predetermined percentage each year to keep up with inflation. The customer can also make additional contributions whenever he wants. His bonus, or part of it, can be invested in the plan. MCB Retirement Plan The customer can plan his retirement by contributing a monthly amount each month. Some of the main benefits are: the customer can choose this retirement age, can also make additional contribution whenever he wants, his bonus, or part of it, can be invested in the plan. Insurance cover in case of death or permanent disability among others are provided. Savings account Customer can also deposit his bonus in a savings account and will earn 2.75% per annum. In this case, his funds shall be available at any time.

[[{"type":"media","view_mode":"media_large","fid":"5494","attributes":{"class":"media-image alignleft wp-image-11332 size-medium","typeof":"foaf:Image","style":"","width":"300","height":"225","alt":"Malaysia"}}]]Hotel Stay

Many middle class families who do not wish to travel abroad prefer to spend some quality time in a hotel or bungalow for a get away. According to Alex Samuelson from Marideal.mu, spending around Rs 25,000 on hotel stay is quite hard for Mauritians. “The month of December announces a peak season and prices are indeed very high. So families have to plan in advance and it is obvious that not everyone can do so. What we have noticed is that whenever we have a deal, we get a lot of interests,” he says. Hotel booking website Marideals.mu provided us with a glimpse of the kind of deals and packages Mauritians are purchasing this December. For a simple day package in well known hotels such as Ile aux Deux Coco, Tamassa Hotel and Le Grand Bleu Hotel, families are ready to spend a minimum of Rs 1,400 per person or even more. Besides, for longer stays, families are more interested in hotels like Maritime, Crystal Beach, Maritime Resort Spa and Coin De Mire Attitude Hotel. The price for one night stay varies from Rs 2,900 to Rs 6,500.

[[{"type":"media","view_mode":"media_large","fid":"5495","attributes":{"class":"media-image size-large wp-image-11330 aligncenter","typeof":"foaf:Image","style":"","width":"960","height":"540","alt":"Furnishing"}}]]Furnishing

Home renovation and furnishing is very common in December. In fact, it is a tradition. And retailers have been quick to cash in on this bonanza. Sales are common among retailers of home appliances, furniture and decoration. Families who do not have any financial commitment usually keep their bonus to buy latest home appliances or furniture. As highlighted by the director of Teck D’Or, in December, the sale of furniture increases by a notch or two. “The middle class families are the main clients in this month. When they get their bonus, it is an opportunity for them to provide themselves with a new sofa set, cupboard or bedrooms,” he says.

Education and school materials

Middle class couples who have children spend an important part of their bonus on the purchase of textbooks, uniforms and other school materials. Some parents even save some money in order to afford private tuition fees for their children the following year.

[[{"type":"media","view_mode":"media_large","fid":"5496","attributes":{"class":"media-image size-medium wp-image-11333 alignleft","typeof":"foaf:Image","style":"","width":"300","height":"169","alt":"Market"}}]]High-income families spend more lavishly

The high-income families usually spend their bonuses in more lavish way. Many such families spend their end of year on overseas trips.

Overseas and cruise

Caroline Chen reveals that for the past few years, there has been a growing trend for cruises. “An increasing number of Mauritians are attracted to travel and discovering the world on cruise ships. This new means of traveling is attractive given that it offers numerous services, new sensations and advantages. We have also noticed that more people are traveling on cruises rather than opting for traditional air travel due to the more competitive prices,” she says. The Sales Director reveals that 600 Mauritians will be spending their end of year holidays on cruises this year. ATOM Travel offers several cruises packages. [[{"type":"media","view_mode":"media_large","fid":"5497","attributes":{"class":"media-image size-large wp-image-11334 aligncenter","typeof":"foaf:Image","style":"","width":"960","height":"540","alt":"Cruise-Ship"}}]] “Costa NeoRomantica cruises will be in Mauritius as from 12th December and up to the 26th. The Costa NeoCollection is an invitation to make the most of every minute, enjoy the holiday in a more leisurely way and linger longer. This is basically a brand new type of cruise experience, tailored to suit individual tastes and let each person go at their own pace, both onboard and ashore. Price per person sharing a twin cabin is at Rs 34,000 for a Classic cabin, Rs 36,000 for a Premium cabin, Rs 38,000 for an outside classic cabin and Rs 12,000 per child sharing the parents’ cabin (max 2 kids per cabin).” ATOM Travel is offering special cruise packages to visit Malaysia and Singapore. “For the first package, travellers will travel by air from Mauritius to Singapore on the 21st December and will be transferred to a four-star hotel. After a day in Singapore, they will embark on Costa Victoria where they will spend four nights. During the cruise, they will discover places such as Phuket, Penang, and Malacca. From 28th December, travellers will spend 5 nights in a four-star hotel in Kuala Lumpur. This cruise package is at Rs 75,000 per person sharing a twin room/cabin, Rs 58,000 per child over 12 sharing their parents’ cabin with an extra bed and Rs 53,000 per child. For the second package, travellers will travel directly to Kuala Lumpur on 23rd December where they will be accommodated for four nights in a four-star hotel. They will enjoy half-day city and country tours. From the 28th December, they will spend 5 night on a cruise ship. They will discover places like Langkawi. Following the cruise, they will spend three nights in Singapore. This cruise package is at Rs 80,000 per person sharing twin room/cabin, Rs 58,000 per child under 12 sharing their parents’ cabin with an extra bed, and Rs 63,000 per child under 18 but over 12, sharing their parents’ cabin with an extra bed.