No. Some words can take the locative, but most cannot. Cities and "small islands," as well as domus "house", rūs "countryside", humus "ground, soil", militia "military service" and focus "hearth" take it. Italia doesn't fall into these categories, so it cannot take the locative.
Notice that there is no case where using locative or a preposition is optional. Either you must use it, or you must not use it.