Black clouds hang over the future of the Adelaide Fringe Festival in 2021.

Organisers say performers will have to take a significant “financial risk” to return amid COVID-19.

According to the ABC, Adelaide Fringe festival director Heather Croall, said costs would pose a large “financial risk” to performers and venues in 2021.

“The artists and the venues are telling us they need us to lower the financial risk in order for them to come back in 2021.”

She said the festival would have to make sure performers could return, but it would need taxpayer support to the tune of just under $1M.

But the real threat to the Fringe is existential. Work opportunities in the arts have ground to a halt around Australia as social distancing is enforced.

The Fringe is primarily an interstate tourism event with thousands of visitors arriving in Adelaide to see shows.

That will be curtailed next year under current distancing provisions, costing the state government millions in revenue.

The Fringe also provides more than 500 casual jobs to young local people.

Last week, Prime Minister Scott Morrison announced the arts industry would receive a $250 million rescue package from the Federal Government.

The funding is part of its JobMaker plan to boost employment in Australia.