Better visuals and much faster/cheaper for the developer to make.
We are still in the infancy of the technology and the vast majority of games with ray tracing doesn’t fully utilise it as they must compromise to support normal raster, leading to half baked implementations on engines not designed with ray tracing in mind.
Edit: I just realised the question was recognising the name of the city, not recognising city based on a picture…
Probably Svolvær/Lofoten with a population of ~4700. It doesn’t have the official status of “City” in Norway though.