Coral bleaching could cost tourism $1b

A new report shows severe bleaching of the Great Barrier Reef could cost Australia 175,000 foreign tourists and up to $1 billion every year.

A new report shows severe bleaching of the Great Barrier Reef could cost up to $1bn every year. (AAP)

Severe coral bleaching of the Great Barrier Reef could cost Australia's tourism industry $1 billion every year, new research shows.

Based on surveys of Chinese, UK, American and domestic tourists, the Australian Institute report shows towns around the reef could lose one million visitors every year if bleaching continues.

The report released on Tuesday also found about 175,000 foreign tourists - including from China - would choose to travel to another country over Australia, a potential loss of $1 billion each year.