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 (3,844 US dollars) in a 40-minute shopping spree.

Local charities accused her of callous excess but Hilton 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.

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