Organisers admitted 2008 had been a tough season for the arts festival, which saw it affected by several problems.

One was a new computerised ticketing system, which was forced to suspend sales several times after opening in June.

Poor weather may have kept some arts lovers away, with record rainfall hitting the Scottish capital in August.

Organisers also pointed to broader factors, such as the credit crunch and the impact of the Olympics, which it was feared would overshadow the Fringe.

But they insisted it had been a "fantastic year", during which ticket sales had breached the 1.5 million barrier for the third consecutive year.

In total, 1,535,519 tickets were sold for the arts festival this year, compared with 1,697,293 in 2007. This represents a drop of more than 160,000.

Director Jon Morgan said: "At the start of the festival many were worried about the loss of venues, impact of the Olympics and the economy.

"In a difficult year, with record rainfall and problems with ticketing, Fringe-goers have come out in force and enjoyed the festival."

He went on: "This is the third year that the Fringe has sold in excess of 1.5 million tickets, signifying another fantastic year for the world's biggest arts festival."