Of course it does. It's like pointing to something and asking 'what's this?'. Of course the act of pointing, or the act of standing in a city resolves 'this' to something else.
But the point is where 'this' resolves to something which has meaning.
A question makes sense, if it is understandable and answerable.
Q1: //TODO
Q2: what's the population of this city ?
Q3: what's the location of this city ?
...
Q22: what's the altitude of this city?
Q23: what's the weather in this city ?
Suppose I ask you "What is the answer to Question 23?".
You'll respond "what is Question 23?" (trying to resolve/concrete 'Q 23').
I'll reply "Question 23 is - 'What's the weather in this city?' ".
You'll respond "well, what does 'this' refer to in Question 23?" (trying to resolve/concrete pronoun 'this')
I'll reply "this refers to the city in Question 22"
You'll respond "well, what is Question 22?' (again trying to resolve/concrete 'Q 23')
I'll reply "Question 22 is - 'What's the weather in this city?' "
You'll respond "well, what does 'this' refer to in Question 22?" (again trying to resolve/concrete pronoun 'this')
So-on, so-forth.. until we reach Question 2, referring to Question 1.
Now, If I define question 1 to be - 'What is the capital of USA?'. Then, by chaining, you can answer Question 23.
But if it do not define question 1, you can't answer Question 23, because I have not given you enough information to resolve pronoun 'this' in 'this city'.
That is the case with OP's question. In order to answer a question, the question must be answerable. In order for a question to be answerable, it must be understandable. In order for a question to be understandable, all pronouns in it must be resolvable to a valid question.
Do you agree that the question 'what is his height?' - is unanswerable IF the asker is not pointing to anyone, or there is no one else in the room, or there is no prior context - because the pronoun 'this' is unresolved ?