Setting the GeoLocation does help. I noticed that there is a difference whether one write

== current geoIP location

or

= current geoIP location

in the cloud. The first one does give the correct location. Is it possible to use that somehow. I tried to use direct commands such as:

WolframAlpha["current location", {{"IPAddress", 1}, "ComputableData"}][[1, 2]]

that work locally but not in the Cloud. But the fact that the double == sign gives the "outside" IP geo-location might be useful. Can that be used somehow?

I even tried to import the wolfram alpha website directly

Import["http://www.wolframalpha.com/input/?i=current+location"]

but that does not seem to work in the Cloud either. It would be nice if this would work without "hard-coding" it. Having said that, it seems that this is only an issue before (!) deploying it. This command

CloudDeploy[GeoGraphics[Here]]

generates a website which uses the correct location.

M.