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Neighbours of suspect Melissa Reid claim she held 'wild drug parties' They say Reid was always talking about 'how many drugs she had taken' Reid and Michaella McCollum Connolly were stopped at Peru airport with 1.5m worth of cocaine on them The pair say they were forced at gunpoint into the drug trade Holidaymakers in Ibiza speak of roaring drug trade that sucks girls in Reid 'celebrates' her 20th birthday in Peru prison with birthday cake from her father

By Paul Bracchi and Victoria Allen

PUBLISHED: 17:58 EST, 16 August 2013 | UPDATED: 22:01 EST, 16 August 2013

Bar Amsterdam is down a dimly lit side street in the west end of San Antonio. There are bigger, brasher and better-known venues in Ibiza, but few enjoy such a sleazy reputation.

Drugs and large quantities of cash have been found on the premises during numerous police raids on the establishment.

A few years ago, it was featured in a BBC documentary called Drugland: Ibiza. Undercover reporters were filmed buying everything from ecstasy to cocaine over the bar as easily as a bottle of beer or a Sex On The Beach vodka cocktail.

Party girl: Michaella McCollum Connolly, 20, had been working as a nightclub hostess in Ibiza party town San Antonio

Innocent? Melissa Reid (left) and Michaella McCollum Connolly (right) say they were forced into the drug trade by gun-wielding gangsters

The most hard-hitting revelation in the programme, however, was not that drugs were so easily available on the Balearic island hardly front-page news but the fact that the people who controlled the illicit trade were mainly British, in particular, gangs from Manchester and Liverpool.

Ibiza has become an extension of their turf in Moss Side or Toxteth, giving them access to a much bigger market. Around 700,000 Britons travel to Ibiza every year, and one in three of those aged between 16 and 34 takes drugs during their visit, according to a recent survey.

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'Ketamine-fuelled 7am raves' and the question: Just how innocent are the two British drug mules who say they were ...