This paper examines the changing institutional context in Romania and Bulgaria, focusing on the emergence and influence of non-governmental organisations (NGOs) in tourism development in rural areas. The paper compares the experiences of two organizations, the origins of which (one a government organized NGO and the other a donor NGO) may have otherwise excluded them from theoretical consideration as NGOs because of their close relationships with state organs. In practice, however, the significance of their ‘non-government status’ cannot be overlooked. Despite the economic and socio-political differences between the two countries, Romania and Bulgaria share common problems with rural tourism development programmes. This paper illustrates how, given these similarities, organizations have responded variously to them, leading to different levels of state involvement in the tourism development process.