It has a grammar mistake. You begin with the word "because," which is part of the pattern "Because X, Y follows," there isn't any Y. The word "where" introduces a clause that explains the word "tropics." I can't explain what's wrong but "where the horrible sunshine there" isn't right, either. Also, the apostrophe ought to go after the letter "s" in "peoples'" Here are several correct sentences:
"Because the city is in the tropics, where the horrible sunshine can burn peoples' skin, everyone uses sunscreen." BECAUSE the city is in the-tropics-where-the-horrible-sunshine-can-burn-people's-skin [THEREFORE] everyone uses sunscreen.
"Because the city is in the tropics, the horrible sunshine can burn peoples' skin." BECAUSE the city is in the tropics [THEREFORE] the horrible sunshine can burn peoples' skin.
We can put in an optional "there." It doesn't change the meaning, but it emphasizes that the reason has to do with location:
"Because the city is in the tropics, the horrible sunshine there can burn peoples' skin."
P.S. Just as a matter of factual detail, you don't need to be in the tropics to get sunburn!