When the Iron Curtain fell, Edith Behrenstengel and Crista Schlatow leapt at the chance to go travelling across the globe. Now the two pensioners are just as likely to take a holiday in their native Germany.

"We've travelled the world and never would have thought to come here 20 years ago, but it's rather nice and was built up so fast," said Ms Behrenstengel, a former secretary day-tripping in the state of Western Pomerania in the country's east.

Close-to-home holidays dubbed "staycations" by trend-watchers have proliferated in the financial crisis, but now the travel industry is gearing to draw another crowd - ageing populations in countries like Germany whose spending power may outlast the downturn.

You could call them "greycationers" - the 50-plus age group mutating under a massive influx of baby-boomers who grew up in the 1960s. After redefining youth culture, they are now making their mark on older age.

Health pursuits and sports, spas, swimming and cycling are all popular, as are vacations organised around cultural events like concerts and museum visits, tour operators say.

In Britain, where domestic holidays are also in vogue, summer rock and folk festivals are multiplying and boomers seeking to shun the coach-tour badges of old age are taking road trips in cult autos like the Volkswagen Microbus.

The most recent report by the UN Travel Organisation in June said domestic and short-haul travel in Europe was holding up better than long-haul so far this year.

The impact of the trend is particularly marked for Germany, Europe's largest economy and home to the world's most diehard tourists. Germans spend more abroad in absolute terms than any other nation - including the US, whose population is four times greater.

Last year, they spent $91 billion on foreign travel, compared with $80 billion spent by US nationals, the UN report showed.

Data from Germany's statistics office show growth in local recreation is supporting the hotel and restaurant industry, worth some €51 billion annually, and helping offset a decline in business travel.

And Germany has the world's third highest median age - 42.1 years - after Japan and Italy, UN data show.

"Seniors today are more active, financially independent, and eager to travel," said Klaus Laepple from Germany's DRV travel association. "Their favourite destination is Germany."

A study released by the Economy Ministry last month showed the senior age group is expected to take 20.3 million domestic holidays a year by 2020 compared with 17.2 million in 2007.

The trend may not be strong enough to offset this year's overall decline in Europe's hospitality sector, but it is helping the German economy, which has just exited its worst recession since World War II.

While overnight visits by foreigners fell this June compared with the same month in 2008, accommodation for native Germans rose five per cent, lifting the overall number of bookings three per cent, statistics office data show.

Germany's largest travel groups, including Rewe, Thomas Cook's Neckermann, and TUI have expanded their offers inside Germany and are increasingly catering to specialised themes like health and culture.

TUI this year published its largest ever German catalogue, with a new beach section covering the country's small northern coast. Its main target group, which it calls "Best Agers" in English, is over 50.

"Given the demographic trend, the importance of this group and seniors to the travel industry will grow even further," said TUI spokesperson Anja Braun. "They have steady disposable income and are somewhat recession-proof."

One TUI chain specialised in foreign vacations has opened two new lakeside resorts in Germany in just over a year.

"Vacations on the North Sea and the Baltic are definitely 'in' this year," said Ingrid Hartges, managing director at Germany's DEHOGA hotel and restaurant association.

Tourism on Germany's northern coast has boomed since the fall of the Berlin Wall, and the surge gives no sign of abating.

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