The only downside to towing with a New Beetle is the fact that the hitches available in the US are pretty flimsy. Most are rated to 1500
pounds and bolt to the tow hook and the spare tire well.
Westfalia makes hitches for european VWs that replace the rear bumper core and are completely hidden when the ball is removed. The rating on those is 3000 pounds with a 200 pound tongue weight. They are expesive and difficult to get your hands on, but that's stout enough to pull some of the small vintage Airstreams!
The funky metric hitch ball would be another issue since euro hitch balls are welded in place and don't come in different sizes.