In the beginning it's to be Manhattan, but there's a Canadian flag in the shot of the hill, and when she walks down the street, another Canadian flag flies from the building.
When Holly announces to the sisters that she'd like to buy the inn, she pronounce 'thuh' rather than 'thee', a common mistake by US Americans. The definite article should be pronounced as 'ee' when preceding a word beginning with a vowel; it's basic grammar. This mistake is repeated many times through the movie.