Sylvester crashes into a bridge that has a sign reading, "Ducka You Head Lowla Brigeda," which is a pun on both "low bridge" and the actress Gina Lollobrigida.
When Granny is relaxing on the gondola and says, "This is so cacciatore" she obviously don't know what she's saying. "Cacciatore" is the Italian word for "hunter" (what she says may be a reference to chicken cacciatore, which means chicken prepared hunter-style, i.e. like a field-cooked meal with local herbs and vegetables).
A modern yet fairly accurate rendering of Venice is shown as the setting, as mid century design became more streamlined and abstract.
This short is part of the love affair with Italy at the time. This is thanks to Italian movies and actors, American films set in Italy, plus the singing of Dean Martin and Frank Sinatra. Post WW1 America fell in love with French cuisine, but Post WW2 brought all things Italian to America.
Tweety strums Santa Lucia, a popular traditional Italian song often heard in films and TV shows of the era.