In Sydney to host an exclusive New Year's dance party, the 27-year-old heir to the Hilton hotel fortune this week drew criticism for spending 5,560 Australian dollars (S$5,536) in a 40-minute shopping spree.

Local charities accused her of callous excess but Hilton on Wednesday defended the splurge.

'I'm in Australia, I think it's important to help out, you know, the economy out here, everywhere in the world,' she told reporters, ahead of her New Year engagement.

'And what's wrong with doing a little shopping? It's New Year's, I need a New Year's dress.' Acting Prime Minister Julia Gillard, questioned during a news conference Tuesday about Hilton's shopping spree, commended the socialite for recognising Australia's attraction as a fashion and shopping destination.

'I heard that a politician said that,' Hilton said. 'I thought that was very sweet and it's true.' Hilton will be paid 100,000 Australian dollars by the party's promoters for her Sydney appearance, promising a number of costume changes ahead of midnight. -- AFP