Italian town that's no resort? Wrong! (8)
I believe the answer is:
sorrento
'italian town' is the definition.
'no resort? wrong' is the wordplay.
'wrong' indicates anagramming the letters.
'no'+'resort'='noresort'
'noresort' is an anagram of 'SORRENTO'.
'that's' is the link.
(Other definitions for sorrento that I've seen before include "Resort on the Bay of Naples" , "site south of Naples" , "City on the Gulf of Naples" , "Resort in Campania" , "Italian town on bay of Naples" .)