Love family vacationing perhaps in Scotland or Japanese city (7)
I believe the answer is:
okinawa
'japanese city' is the definition.
(I've seen this before)
'love family vacationing perhaps in scotland' is the wordplay.
'love' becomes 'o' (In tennis, 'love' means 'zero').
'family' becomes 'kin' (synonyms).
'vacationing perhaps in scotland' becomes 'awa' (Scottish term for 'away').
'o'+'kin'+'awa'='OKINAWA'
'or' acts as a link.
(Other definitions for okinawa that I've seen before include "Pacific island" , "Japanese location" , "Group of small islands in southern Japan with US military presence" , "Campaign in the closing days of World War II in the Pacific" , "Japanese city" .)