Eccentric females touring island capital (7)
I believe the answer is:
cardiff
'capital' is the definition.
(Cardiff is an example)
'eccentric females touring island' is the wordplay.
'eccentric' becomes 'card' (card can mean an eccentric person).
'females' becomes 'ff' (an abbreviation for female written twice).
'touring' means one lot of letters goes inside another (touring can mean going round).
'island' becomes 'i' (geographical abbreviation).
'card'+'ff'='cardff'
'cardff' placed around 'i' is 'CARDIFF'.
(Other definitions for cardiff that I've seen before include "Welsh city" , "Capital of Wales" , "Capital on the Taff" , "Place in Wales" , "City on the Taff" .)