From looking at the photos of some of the other ladies at the event, I tend to believe that it is William who is under dressed for the occasion.
It might have been worthwhile to select a traditional and practical guayabera shirt for him to wear for this tour. They're considered formal wear in the region.
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I tend to agree with you. I also believe that Catherine's dress code for each occasion was already planned and approved of by her staff after their investigating on criteria per stop. She certainly didn't just grab outfits from her closet without consultation from experts. Every detail has been written in detail prior to leaving UK. If she does feel overdressed, I think she is just getting on with her duty and hiding her feelings for the problem, if any. JMO