The sentence uses "holiday" and "vacation" as verbs, so "to" is appropriate. if you want to use "for", the two words have to be nouns. As such they need an article: "for a holiday or vacation".
Student or Learner
Thanks a lot,Mike.
A mountain resort is a place to holiday or vacation located in a mountainous area.
My personal feeling that 'place' has the idea of an implied in in/at/to which which after it or in/at/to at the end (but not both) in such sentences as:
A mountain resort is a place (in which) to holiday or vacation (in).
Prague is a great place (in which) to live (in).
IKEA is a good place (at which) to work (at).
Berlin is an exciting place (to which) to go (to).