This study examines the role of entrepreneurship education quality in shaping students’ tourism development orientation through cognitive and capability-based mechanisms. In the context of developing countries such as Indonesia and Timor-Leste, strengthening entrepreneurial capacity is essential to support sustainable tourism growth. Using a quantitative cross-sectional design, data were collected from 348 university students enrolled in entrepreneurship-related programs across the two countries. The study employs Partial Least Squares Structural Equation Modeling (PLS-SEM), multi-group analysis (PLS-MGA), and fuzzy-set Qualitative Comparative Analysis (fsQCA) to test direct, mediating, and moderating relationships. The findings reveal that entrepreneurship education quality significantly enhances entrepreneurial self-efficacy, which in turn strengthens innovation capability, leading to higher entrepreneurial intention and ultimately tourism development orientation. However, no direct effect of education quality on entrepreneurial intention or tourism orientation was found, indicating full mediation. Entrepreneurship course experience positively moderates the relationship between education quality and self-efficacy, while prior entrepreneurial experience shows no significant moderating effect. Cross-national analysis indicates that the link between entrepreneurial intention and tourism orientation is stronger in Indonesia than in Timor-Leste. Overall, the study highlights the importance of fostering self-efficacy and innovation capability as key pathways through which entrepreneurship education contributes to tourism development.