Maafushi is one of the inhabited islands of Kaafu Atoll and the proposed capital for the Medhu Uthuru Province of the Maldives. It is noted for the Maafushi Prison.
It was heavily damaged in the 2004 tsunami which impacted on over 100,000 of the Maldives 300,000 population. The International Federation of Red Cross and Red Crescent Societies, supported by the Irish and American Red Cross Societies, began work on a mains sewage system on August 10, 2006. The International Federation has also funded the building of homes for those who lost theirs during the tsunami. Both schemes are carried out in partnership with commercial contractors and with the support and involvement of the local community.
There are more than 30 guest houses in Maafushi as at June 2014, and it is the only local inhabited island with most number of guest houses and guest beds in the country. The guest houses provide the island with direct employment, and many other indirect economic benefits to almost every family in the island. Most guest houses are funded by direct investments by local residents of the island. However, recently there have been investments by businessmen in Male' and elsewhere.
Guest houses provide various excursions, including, snorkeling, fishing, water sports, and picnic island excursions. There are also three dive centers in Maafushi.
