The Met Office in Fiji says Tropical Cyclone Hola is now a category four storm and is expected to eventually reach category five.
As it moves south west from Vanuatu's Malekula Hola is intensifying and forecasters say sustained winds of up to 165 kilometres should be expected.
They could increase to 203 kilometres an hour.
It is expected to move to the south east later and pose a threat for New Caledonia.
The Vanuatu weather office said damaging gale force winds of 75 kilometres an hour will continue through today to affect Malampa province while destructive storm force winds of 130 kilometres gusting to 160 kilometres are forecast over the next 24 hours.
Very destructive hurricane force winds of up to 175 kilometres gusting to 185 kilometres an hour will affect Malekula.