To make a film on location is to film scenes in the actual area that the film is set (or a close resemblance; for example a lot of films "set" in New York City are filmed in Toronto - that's still called "on location"), rather than back at the Studio. Many interior shots will still be done in the studio, but most of the action, outdoors shots may be filmed in "on location."
The tourist benefit to this may be two-fold. The way it's written there, it almost sounds like she enjoys playing tourist by filming on location. I think it's generally assumed however that it adds touristic value to a place if you can say that a film was made there.
Consider the South Island of New Zealand, for example, after The Lord of the Rings trilogy was filmed there. It has added touristic value to Church Street in Toronto to say that it was the filming site for the American version of Queer As Folk (allegedly set in Pennsylvania). Last week were were on the rooftop terrace of the Gayer Anderson Museum in Cairo as the guide pointed out what we had already realized: Roger Moore as James Bond in the Spy Who Loved Me had jumped off that roof. It now has added tourist benefit.
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