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Will Laos tourism suffer after bootleg alcohol poisoning?

Tommy Walker in Bangkok
December 12, 2024

A spotlight is being put on counterfeit liquor in Southeast Asia after six people died from methanol poisoning in the Laotian backpacker hotspot Vang Vieng.

https://p.dw.com/p/4o48d
Nana's Backpacker Hostel in Vang Vieng
Tainted alchohol is suspected to have been served at the Nana Backpacker Hostel in Vang ViengImage: Anupam Nath/AP/dpa/picture alliance

The recent deaths of six travelers by methanol poisoning in Laos has highlighted the issue of moonshine alcohol in Southeast Asia's tourist hotspots.

The victims, from Australia, the UK, Denmark and the US, and aged between 19 and 28 years old, were staying at a hostel in the popular tourist town of Vang Vieng in November.

The six were are said to have consumed free vodka shots at Nana's Backpackers Hostel, which is not uncommon in party hostels around Southeast Asia. The hostel manager has denied any wrongdoing, but he and seven of his staff were arrested and are being investigated.

There were several others who complained of being unwell since, but no other deaths have occurred in connection with the incident.

Dr. Chenery Ann Lim, project manager from the methanol poisoning initiative at Doctors without Borders (MSF), warned the deaths in Laos are only the "tip of the iceberg" in an interview with Australian media in November.

"We don't really hear a lot of what is actually happening on the ground ... a lot of the (people) who are consuming (the drinks) are not tourists, but also the local population," she said.

The Laos government has since banned the sale and consumption of the liquor brand Tiger Vodka and Tiger Whisky.

Six tourists killed after methanol poisoning in Laos

Laos tourism reputation takes a blow

Laos is one of Southeast Asia's poorest countries, and its economy is struggling. The country has an external debt of $13.8 billion dollars, amounting to 108% of the country's GDP. 

Laos is heavily reliant on agriculture and industry, with an estimated that 85% of the population employed in agriculture.

But the country hopes that tourism might be provide an economic lifeline.

Laos has welcomed 5 million visitors already in 2024, generating $1 billion in revenue and surpassing initial forecasts.

Lao Prime Minister Sonexay Siphandone has credited the increase of arrivals to the new Laos-China Railway connection, which links to tourist hotspots like Vang Vieng and Luang Prabang.

However, David Ormsby, a tourism consultant, told DW Laos needs to increase its structural capabilities to cope with growing demand.

"A focus on improving services and infrastructure would be a step in the right direction," he told DW.

"Increasing mass tourism may put increased strain on the infrastructure and has the potential to damage the natural and cultural beauty that it seeks to showcase," he added.

Backpackers not expected to stay away 

The recent deaths only add to Vang Vieng's checkered past, after 27 tourists died from drowning while tubing in the Nam Song River in 2011.

"It may have a short-term impact on the backpacker market. Laos needs to prove that this cannot happen again to rebuild trust. Longer term I don't see backpackers staying away in large numbers, but behaviors will change. Those free-shot parties will be viewed very cautiously," Gary Bowerman, a Kuala Lumpur-based tourism analyst, told DW.

"More broadly, this should concern governments across Southeast Asia, as counterfeit liquor is widespread and travelers will ask more questions than before about the origin of their drinks," he added.

Laos economy struggles amid inflation and falling investment

Methanol poisoning in Southeast Asia

According to MSF, methanol poisoning is more common in Southeast Asia than anywhere in the world.

Statistics show that methanol outbreaks are common in Cambodia, the Philippines and Vietnam. But Indonesia leads the way with most methanol-related incidents.

Professor Ady Wirawan, from at the Department of Public Health and Preventive Medicine, at Bali's Udayana University in Indonesia, told DW that methanol poisoning is a "serious issue in Southeast Asia, including Indonesia, where it poses significant health, social and economic risks."

"This problem is most prevalent in unregulated alcohol markets, where methanol is sometimes added intentionally or contaminates beverages during unsafe or substandard production. Both locals and tourists are at risk, especially when consuming cheap or homemade alcohol,” he added.

Methanol is similar to ethanol, the chemical that makes a drink alcoholic. Illegal bootleggers add methanol because it's a cheaper alternative.

But its consumption can be deadly to humans, with fatality rates between 20-40 % depending on the concentration level.

In Muslim-majority Indonesia, there are concerns that its strict alcohol laws may drive people to buying and consuming cheap, unregulated booze.

Indonesia's legal drinking age is 21, but public consumption is banned in many places. There is also a high import tax on alcohol, and it is commonly available only in tourist destinations, including Bali and Jakarta.

"In Indonesia, methanol use in beverages is prohibited, and there are regulations in place for licensed alcohol producers to ensure safety and quality. However, enforcing these regulations is challenging due to the widespread informal market and limited monitoring resources," Professor Ady said.

"In Bali, efforts to address this issue have included regular inspections of bars and restaurants to prevent the sale of tainted alcohol, public awareness campaigns advising tourists and locals to avoid unregulated alcohol, equipping hospitals with antidotes like ethanol for treating methanol poisoning, as well as training health-care providers to respond effectively," he added.

What makes methanol so dangerous?

Edited by: Wesley Rahn 

Tommy Walker
Tommy Walker Reporter focusing on Southeast Asian politics, conflicts, economy and society.@tommywalkerco