The odds do in fact increase. For clarity imagine there are five other statues you can't see, and the jewel is actually hidden, with equal probability $\frac{1}{10}$, among all ten. Smashing one of the statues removes the possibility that the jewel is in that statue, so now the jewel must be hidden with equal probability $\frac{1}{9}$ among each of the remaining $9$ statues, and $\frac{1}{9} > \frac{1}{10}$.
So the odds that the jewel is in a specific other statue increase, however the odds that the jewel is hidden in a visible statue at all decreases from $\frac{5}{10}$ to $\frac{4}{9}$.