Forbes magazine labeled it "Trouble in Paradise"; reporter Richard Phalon wrote in $1988$: "Club Med, that once lusty purveyor of packaged sea, sand and sun vacations, is slipping into middle age bearing all the signs of an identity crisis. There are times when an income statement can be more unforgiving than a mirror." Earnings per share had declined $6$ percent despite a nearly $10$ percent rise in sales; investors had become disenchanted with thestock; political and labor problems had caused temporary closings in Haiti and the Turks and Caicos Islands at the same time the popular Paradise Island $($the Bahamas$)$ resort was closed for renovations.

A year later in Forbes, Club Med responded with an "I Am Sorry, We Have Changed" advertising campaign. Joshua Levine wrote in $1989$: "With a new $512$ million advertising campaign, Club Med, Inc., is shedding its old image as an endlessly partying, global singles bar. The playboy$-$playgirl image that Club Med has projected for the last $21$ years is being rejected by much of the crucial U$.$S$.$ market. An aging, more family$-$oriented U$.$S$.$ has outgrown the Club Med of the $1970$s$."$ In response to market changes, Club Med by $1990$ had restructured organizationally and initiated a strategic shift from an international to a global concept. It refocused its North American marketing strate$-$gies. It developed a worldwide growth strategy for the $1990$s$.$ Revenues in $1989$ rose $12$ percent over $1988$ and operating profits increased $128$ percent. Serge Trigano, chief executive officer $($CEO$)$ of Club Med, said $"$We are beginning $1990,$ the $40$th year of the Club Med concept, with an aggressive strategy for growth. The challenge will be to execute this strategy effectively while rapidly